ITVITED  STATES  TARIFF  COMMISSION 


UC-NRLF 


3    lib    M2M 


Dyes  and  Other  Coal -Tar 


H  F 


Chemicals 


REPORT   TO   CONGRESS 

Recommending  amendments  to  Title  V  of 
Act  of  September  8,  1916 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1918 


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UNITED  STATES  TARIFF  COMMISSION 
WASHINGTON 


Dyes  and  Other  Coal -Tar 
Chemicals 


REPORT   TO   CONGRESS 

Recommending  amendments  to  Title  V  of 
Act  of  September  8,  1916 


WASHINGTON 

(ioVIJKNMi-INT  PBINTING  OFFICE 

1918 


UNITED    STATES  TARIFF   COMMISSION. 

Office:  1322  New  York  Avenue. 

Washington,  D.  C. 


Gummissioners  : 

V.  W.  TAUSSIG,  Chairman. 

THOMAS  WALKER  PAGE,  Vice  Chairman. 

DAVID  J.   LEWIS. 

WILLIAM  KENT. 

WILLIAM   S.   CULBERTSON. 

EDWARD  P.  COSTIGAN. 

William  M.  Stedart,  Secretary. 

In  the  preparation  of  this  report  the  commission  has  had  the 
services  of  Dr.  Grinnell  Jones,  chemical  expert,  and  also  the  assist- 
ance of  Dr.  E.  R.  Pickrell,  of  the  Customs  Service. 


LETTER  OF  TRANSMITTAL. 


United  States  Tariff  Commission, 

Washington,  December  12,  1918. 
The  Committee  on  Ways  and  Means  of  the  House  of  Representatives  : 
I  have  the  honor  to  transmit  herewith  a  report  by  the  United 
States  Tariff  Commission  on  dyes  and  other  coal-tar  chemicals. 
Very  respectfully, 

F.  W.  Taussig,  Chairman. 
(3) 


393187 


CONTENTS. 


Page. 

Letter  of  transmittal 8 

Introduction 7 

Special  Report  to  CJongress  recommending  Amendments  to  Title  V  of 

the  act  of  September  8,  1916 ' 11 

Draft  of  a  Bill  to  Amend  Title  V  of  act  of  September  8,  1916 23 

Text  of  Title  V  of  the  act  of  September  8,  1916 29 

Text  of  Title  V  of  the  act  of  September  8,  1916,  edited  to  show  Proposed 

Amendments 33 

Detailed  Technical  Discussion  of  Reasons  for  the  Proposed  Amendments-  89 
Decisions  upon  Classification  under  Title  V  of  the  act  of  September  8, 

1916    65 

(5) 


INTRODUCTION. 


This  report,  issued  as  one  among  the  publications  of  the  United 
States  Tariff  Commission  on  industries  affected  by  the  tariff,  is 
divided  into  six  parts. 

First.  A  statement  to  Congress  recommending  amendments  to  Title 
V  of  the  act  of  September  8, 1916.  In  this  statement  possible  evasions 
of  the  intent  of  the  law  and  difficulties  in  certain  administrative  fea- 
tures are  explained. 

Second.  A  draft  of  a  bill  to  amend  Title  V  of  the  act  of  September 
8,  1916.  This  proposed  bill  is  designed  to  prevent  evasions  which 
are  possible  under  the  act  of  September  8,  1916. 

Third.  Text  of  Title  V  of  the  act  of  September  8, 1916. 

Fourth.  Text  of  Title  V  of  the  act  of  September  8,  1916,  edited  to 
show  proposed  amendments. 

Fifth.  Detailed  technical  discussion  of  reasons  for  the  proposed 
amendments. 

Sixth.  Decisions  of  the  Treasury  Department,  United  States  Board 

of  General  Appraisers  and  the  United  States  Court  of  Customs 

Appeals  upon  classifications  under  Title  V  of  the  act  of  September 

8,  1916. 

(7) 


REPORT  TO  CONGRESS,  RECOMMENDING  AMEND- 
MENTS TO  TITLE  V  OF  THE  ACT  OF 
SEPTEMBER  8,  1916 


(0) 


DYES  AND  OTHER  COALTAR  CHEMICALS. 


EEPORT  TO  CONGRESS  RECOMMENDING  AMENDMENTS  TO  TITLE  V 
OF  THE  ACT  OF  SEPTEMBER  8,  1916. 


The  Committee  on  Ways  and  Means  of  the  House  of  Representatives: 
The  industrial  emergency  created  by  the  war  has  resulted  in  a 
remarkable  development  of  the  chemical  industries  of  the  United 
States.  Fundamental  changes  have  occurred  which  will  have  a  per- 
manent influence  on  the  conditions  of  international  competition. 
From  the  viewpoint  of  those  interested  in  tariff  problems,  no  branch 
of  this  development  is  of  more  importance  than  that  which  has 
affected  the  coal-tar  industries.  The  manufacture  of  coal-tar  dye- 
stuffs,  medicinals,  and  photographic  chemicals  was  of  little  signifi- 
cance in  the  United  States  before  the  war.  Three-fourths  of  the 
world's  supply  of  coal-tar  dyes  was  produced  in  Germany,  and  Ger- 
man interests  controlled  one  or  more  of  the  essential  materials  for 
at  least  half  of  the  dyes  manufactured  outside  of  German  territory. 
Switzerland,  the  producer  of  second  importance,  depended  upon  Ger- 
man sources  for  her  coal  tar  and  for  many  other  necessary  chemicals. 
Further,  Great  Britain,  France,  the  United  States,  Austria,  and 
Eussia  resorted  largely  to  German  materials  for  the  small  fraction 
which  they  manufactured  for  their  own  consumption.  In  general 
they  offered  little  competition  to  the  great  German  industry. 

The  same  situation  prevailed  in  the  closely  related  field  of  coal-tar 
medicinals,  where  Germany  maintained  an  even  more  formidable 
position.  German  investigators  were  the  first  to  synthesize  some 
of  the  most  important  drugs  known  to  medicine,  and  their  products 
were  so  protected  by  patents  and  trade-marks  and  by  the  control  of 
raw  materials  that*^there  was  little  possibility  for  the  manufacture 
of  these  products  in  the  United  States. 

One  of  the  effects  of  the  outbreak  of  the  European  war  was  an 
acute  shortage  of  dyes  in  this  country.  At  the  earnest  request  of 
representatives  of  the  textile  industry  Congress  in  1916  passed  a  law 
raising  the  duties  on  dyestuffs  and  other  closely  related  products  de- 
rived from  coal  tar,  including  intermediates,  photographic  chemicals, 
medicinals.  flavors,  synthetic  phenolic  resins,  and  explosives.  The 
act  of  September  8,  1916,  has  in  a  large  measure  accomplished  its 
purpose  of  encouraging  the  investment  of  capital  in  the  dye  industry 
m  the  United  States.  American  chemists  and  business  men  have 
met  the  emergency  with  conspicuous  success  by  the  creation  of  a  new 
industry.  The  American  wool,  cotton,  and  silk  mills  during  1917 
produced  a  larger  volume  of  goods  than  ever  before  in  their  history. 
The  dyes  needed  were  supplied  by  the  new  American  dyestuff  indus- 
try, with  relatively  small  aid  from  Switzerland.     So  great  has  been 

(11) 


12 

the  advance  that  the  export  of  American  dyes  has  surpassed  in  value, 
although  not  in  tonnage  nor  in  variety,  the  annual  imports  into  the 
United  States  before  the  war.  There  has  also  been  a  corresponding 
development  of  other  branches  of  the  coal-tar  products  industry, 
especially  in  the  manufacture  of  medicinals  and  photographic 
chemicals. 

Although  the  law  has  been  successful  in  its  main  purpose,  it  has 
become  clear  that  it  is  not  so  worded  as  to  give  effect  completely 
and  perfectly  to  the  presumable  intent  of  Congress.  The  commis- 
sion begs  to  bring  to  the  attention  of  Congress  some  difficulties  of 
interpretation,  some  administrative  difficulties,  and  also  some  ques- 
tions of  policy. 

Administrative  difficulties  and  recommendations  thereon. — After 
a  careful  study  of  the  phraseology  and  probable  working  of  the  pres- 
ent law,  as  well  as  of  the  development  of  the  industries  of  the  United 
States,  the  commission  concludes  that  there  are  several  ways  in  which 
the  presumable  intent  of  Congress  can  be  evaded. 

(1)  One  possibility  of  evasion  arises  from  the  fact  that  the  act 
of  1916  does  not  repeal  specifically  rates  of  duty  in  the  old  law  which 
are  in  conflict  with  the  intent  of  the  new.  It  is  true  that  the  act  of 
1916  contains  a  provision  that  "  so  much  of  said  act  of  1913  or  any 
existing  law  or  parts  of  law  as  may  be  inconsistent  with  this  title 
are  hereby  repealed."  But  the  enumeration  of  certain  specific  com- 
modities m  the  act  of  1916  and  the  failure  to  enumerate  others  spe- 
cifically, opens  the  possibility  of  a  construction  of  the  act  of  1916 
probably  not  contemplated  Dy  Congress.  The  case  of  salol  fur- 
nishes an  example.  Paragraph  18  of  the  act  of  1913  imposes  a  duty 
of  25  per  cent  ad  valorem  on  salol,  which  is  mentioned  by  name  in 
this  paragraph.  The  act  of  1916  imposes  a  duty  of  30  per  cent  on 
"  medicinals  *  *  *  when  obtained,  derived,  or  manufactured  in 
whole  or  in  part  from  any  of  the  products  provided  for  in  Groups  I 
and  II."  The  article  salol  is  such  a  medicinal  and  presumably  was 
expected  to  be  included  in  the  class  of  medicinals  described  in  these 
general  terms.  In  actual  practice,  however,  the  customs  authorities 
have  continued  to  classify  salol  under  paragraph  18  of  the  act  of 
1913,  this  being  deemed  the  more  specific  provision. 

Other  similar  cases  could  be  cited.  Special  attention  should  per- 
haps be  called  to  saccharin  and  sodium  benzoate,  which  (like  salol) 
are  medicinals  derived  from  coal  tar  and  are  described  in  general 
terms  in  the  act  of  1916,  but  are  also  specifically  mentioned  in  the 
act  of  1913,  and  are  there  subjected  to  specific  duties — 65  cents  per 
pound  in  the  case  of  saccharin  (par.  179)  and  5  cents  per  pound  in 
the  case  of  sodium  benzoate  (par.  67).  They  differ  from  salol  in 
that  they  are  used  not  only  as  medicinals,  but  for  other  purposes  also. 

Saccmirin  is  used  chiefly  as  a  flavor  for  chewing  tobacco,  and  is 
therefore  within  the  general  terms  of  the  provision  in  the  act  of  1916 
for  "  flavors  *  *  *  obtained,  derived,  or  manufactured  in  whole 
or  in  part  from  any  of  the  products  provided  for  in  Groups  I  and  11." 

Sodium  benzoate,  though  used  as  a  medicinal,  is  chiefly  a  preserva- 
tive for  food.  It  is  made  from  benzoic  acid,  which  is  mentioned  by 
name  in  the  act  of  1916  and  there  made  dutiable  at  a  much  higher 
rate  (15  per  cent  plus  2^  cents  per  pound)  than  the  duty  of  5  cents 
per  pound  (under  the  act  of  1913)  on  sodium  benzoate.    This  ere- 


13 

ates  an  anomalous  relationship  between  the  raw  material  (benzoic 
ncid)  and  the  finished  product  made  therefrom  (sodium  benzoate). 

Both  saccharin  and  sodium  benzoate  are  from  a  manufacturing 
and  commercial  point  of  view  closely  allied  to  the  articles  covered 
by  Group  III  of  the  act  of  1916.  We  therefore  suggest  that  they 
should  be  specifically  mentioned  in  Group  III  and  that  the  specific 
provisions  for  them  in  the  act  of  1913  be  repealed. 

The  effect  would  be  to  raise  the  rate  of  duty  in  the  case  of  sodium 
benzoate  and  probably  to  lower  it  in  the  case  of  saccharin.  The  pres- 
ent price  of  saccharin  (about  $9  per  pound)  is  many  times  the  nor- 
mal, owing  to  the  fact  that  it  is  made  from  toluol,  which  is  very 
important  for  the  manufacture  of  explosives  and  not  available  in 
amounts  approaching  the  need.  At  the  prices  which  prevailed  be- 
fore the  war  (70  cents  to  $1.50  per  pound)  and  which  are  likely  to 
prevail  again,  the  proposed  change  represents  a  reduction  in  the  duty. 
The  ad  valorem  equivalent  of  the  specific  duty  of  65  cents  per  pound 
on  saccharin  varied  before  the  war  from  96  per  cent  in  1911  to  47.7 
per  cent  in  1913. 

Numerous  other  similar  cases  have  been  found  of  articles  which 
Congress  presumably  intended  to  cover  by  the  act  of  1916,  but  which, 
in  actual  practice,  are  still  being  classified  under  the  act  of  1913,  in- 
cluding the  following  articles  in  addition  to  those  already  discussed. 

(a)  Phenolphthalein,  acetanilid,  acetphenetidin,antipyrine,acetyl- 
salicylic  acid,  and  aspirin,  which  are  now  being  classified  under  para- 
graph 18. 

(b)  Coumarin,  which  is  now  classified  under  paragraph  5. 

(c)  Explosives  derived  from  coal  tar,  such  as  trinitrotoluol,  now 
classified  under  paragraph  501. 

(2)  Another  possibility  of  evasion  arises  from  the  circumstance 
that  certain  commodities  classed  as  intermediates,  which  in  the  act 
of  1916  are  in  Group  II  and  are  subject  to  a  duty  of  15  per  cent  ad 
valorem  and  2^  cents  a  pound,  are  transformable  into  finished  prod- 
ucts at  very  slight  expense  and  by  very  simple  processes.  There  are, 
for  example,  certain  intermediates  called  leuco  acids  and  leuco  bases 
(i.  e.,  colorless  compounds),  which  are  not  strictly  dyes,  yet  have  been 
carried  in  the  process  of  manufacture  to  a  point  where  only  an  insig- 
nificant and  inexpensive  operation  is  needed  to  convert  them  into 
dyes.  Under  the  act  of  1916  they  will  inevitably  be  imported  in  the 
leuco  state — not  quite  finished  as  dyes,  but  very  nearly  finished;  they 
will  then  be  converted  into  dyes  within  this  country,  cheaply  and 
easily.  They  will  be  imported  at  the  intermediate  duty  of  15  per 
cent  plus  2^  cents,  and  yet  will  compete  directly  with  completed  dyes 
of  domestic  manufacture.  A  striking  instance  is  that  of  indoxyl,  an 
intermediate  which  is  in  the  last  stage  in  the  succession  of  processes 
by  which  synthetic  indigo  is  obtained.  Indoxyl  is  a  colorless  sub- 
stance, not  a  dye,  but  by  the  mere  process  of  dissolving  it  in  water 
and  blowing  air  (oxygen)  through  it,  the  last  chemical  step  in  the 
production  of  synthetic  indigo  is  completed,  and  the  commercial 
indigo  is  produced.  Indoxyl  is  dutiable  under  the  present  act  as  an 
intermediate ;  indigo  is  dutiable  as  a  dye.  It  is  more  than  probable 
that  under  the  terms  of  the  present  act  importation  will  take  the  form 
of  indoxyl :  and  this  will  be  virtually  the  importation  of  indigo,  com- 
peting with  indigo  of  domestic  manufacture. 


14 

Another  potential  evasion  is  through  the  importation  of  dyes  as 
"  ink  powders,"  under  paragi-aph  37. 

Synthetic  methyl  salicylate,  derived  from  coal  tar,  resembles  the 
natural  oil  of  wintergreen  so  closely  that  it  can  be  fraudulently  in- 
voiced as  oil  of  wintergreen,  and  can  thereby  be  imported  at  a  lower 
rate  of  duty  under  paragraph  46.  There  appears  to  be  no  sure  safe- 
guard against  the  importation  of  mixtures  of  the  articles  provided 
for  in  Group  II  or  Group  III  under  paragraph  5. 

In  the  case  of  certain  distillates  derived  from  coal  tar  an  unsuit- 
able specification  has  resulted  in  placing  upon  the  dutiable  list  much 
material  which  Congress  probably  intended  to  be  imported  free. 
This  difficulty  can  be  overcome  by  changing  the  temperature  men- 
tioned in  the  specification  which  distinguishes  between  dutiable  and 
free  distillation  from  200°  to  190°  C. 

(3)  A  third  possibility  of  evasion,  or  if  not  evasion,  of  unex- 
pected complication,  arises  from  the  circumstance  that  dyes  as  ordi- 
narily dealt  with  in  commerce  are  in  most  cases  not  dyes  in  a  chem- 
ically pure  form,  but  are  weakened  or  reduced  in  strength  by  mixing 
with  water,  salts,  or  other  diluent.  Synthetic  indigo,  for  instance,  is 
ordinarily  sold  in  the  form  of  a  paste,  containing  20  per  cent  of 
pure  indigo  and  80  per  cent  of  inert  matter,  chiefly  water.  In  the 
case  of  other  dyes  also,  including  most  of  the  important  ones,  there 
is  a  recognized  standard  commercial  strength.  Prices  are  habitually 
quoted  on  the  basis  of  this  usual  strength.  In  the  case  of  still  other 
dyes,  however,  there  is  no  recognized  commercial  strength.  The 
duty  of  5  cents  per  pound,  imposed  by  the  act  of  1916,  was  pre- 
sumably intended  to  apply  to  the  dyes  in  their  usual  commercial 
strength,  and  not  to  the  pure  forms  which  ordinarily  are  unknown 
in  commerce.  The  wording  was,  however,  not  so  framed  as  to  insure 
this.  Under  the  present  wording  of  the  law  the  duty  is  levied  and 
apparently  must  be  levied,  on  the  weight  of  the  dye  as  imported, 
regardless  of  its  concentration  or  strength.  This  permits  dyes  to 
be  imported  in  a  pure  state  or  at  least  a  highly  concentrated  state 
and  then  to  be  reduced  to  the  usual  commercial  strength  after  having 
passed  through  the  customhouse.  The  effective  duty  is  consequently 
much  lower  than  was  presumably  intended. 

This  situation,  however,  can  not  be  dealt  with  by  any  specific 
legislative  prescription  of  the  commercial  or  standard  strength  of 
the  several  dyes.  In  many  cases,  no  trustworthy  basis  now  exists  for 
a  definite  standardization  of  commercial  strength.  Under  these 
circumstances,  the  commission  believes  it  best  that  discretion  be 
given  to  the  administrative  department  and  that  the  Secretary  of 
the  Treasury  be  authorized  to  determine  from  time  to  time  Avhat  is 
the  dutiable  strength  of  the  several  dyes,  with  discretion  to  make 
changes  in  accord  with  gradually  ascertained  and  tested  commer- 
cial practice.  Discretionary  power  of  this  sort  will  enable  experts 
to  recommend  to  the  Secretary  of  the  Treasury  standards  of  strength 
conforming  approximately  to  commercial  usage,  with  the  possi- 
bility of  modifying  them  as  experience  might  indicate. 

This  mode  of  dealing  with  the  situation  would  be  facilitated  by 
requiring  a  statement  on  all  imported  packages  of  the  exact  constitu- 
ents and  strength  of  clyestufFs  contained  therein.  Such  a  statement 
would  make  easier  the  accurate  appraisal  of  imports  of  dyes  for  the 


15 

ad  valorem  duty.  Appraisal  is  exceptionally  diflficult  owing  to  the 
difficulty  of  identification  and  variability  in  strength.  The  require- 
ment would  serve  further  as  a  guarantee  to  purchasers  of  the  identity 
and  strength  of  the  dyestuffs  which  they  were  buying.  The  com- 
mission is  satisfied  that  there  has  been  much  dishonesty  in  the  dye- 
stutl's  trade,  and  that  something  analogous  to  the  provision  of  the 
pure  food  laws  in  regard  to  misbranding  would  be  of  great  ad- 
vantage. It  is  accordingly  recommended,  both  as  an  aid  in  adrnin- 
istering  the  law  and  as  a  safeguard  for  purchasers,  that  every  im- 
ported package  shall  contain  a  specific  statement  showing  the  con- 
stituents and  strength  of  the  contents. 

Proportion  of  domestic  produrtion  and  imports. — Difficulties  of 
administration  and  also  some  difficult  questions  of  policy  arise  in 
connection  w^ith  that  clause  of  the  act  of  1916  which  reads  as  follows : 

If.  at  the  expiration  of  five  years  from  the  date  of  tlie  passage  of  this  act,  the 
President  finds  that  there  is  not  beins  mannfactured  or  produced  within  the 
United  States  as  nnich  as  sixty  per  centum  in  value  of  the  domestic  consump- 
tion of  the  articles  mentioned  in  Groups  II  and  III  of  section  500,  he  shall,  by 
proclamation,  so  declare,  whereupon  the  special  duties  imposed  by  this  section 
on  such  articles  shall  no  longer  be  assessed,  levied,  or  collec^ted. 

The  President  has  requested  the  Tariff  Commission  to  ascertain 
the  facts  upon  which  Executive  action  can  be  based.  The  commission 
accordingly  has  taken  a  census  of  the  production  during  1917  of  dye- 
stuffs  and  other  coal-tar  products  covered  by  the  law,  and  is  prepared 
to  continue  the  taking  of  such  a  census  from  year  to  year  hereafter. 
A  report  stating  the  results  of  this  census  has  been  published.  The 
inquiries  upon  which  it  is  based  have,  however,  indicated  some  diffi- 
culties to  which  the  commission  now  invites  attention. 

The  determination  of  production  in  the  United  States  is  entirely 
feasible.  That  of  total  domestic  consumption,  however,  is  not  so.  It 
would  seem  impracticable  to  secure  statistical  returns  direct  from 
every  consumer.  The  alternative  is  to  define  consumption  as  the  sales 
of  the  American  manufacturers  plus  imports,  exports  being  then  de- 
ducted. But  this  procedure  involves  many  difficulties.  Export  sta- 
tistics are  not  available  in  sufficient  detail.  It  is  doubtful  whether 
they  could  be  secured  in  the  detail  and  with  the  accuracy^  needed. 
Even  more  difficult  is  the  ascertainment  of  the  value  of  imports. 
Statistics  in  terms  of  physical  quantities  (tons  or  pounds)  are  obvi- 
ously not  significant  for  the  purpose  in  hand,  since  the  commodities 
are  immensely  variable  in  quality  and  value.  The  only  significant 
comparison  is  one  in  terms  of  value.  But  the  value  of  the  imports, 
for  proper  comparison  with  the  domestic  production,  is  extremely 
difficult  to  secure  in  terms  comparable  to  the  value  of  domestic  out- 
put. The  values  recorded  in  the  import  statistics  are  foreign  market 
values.  These  must  be  converted  into  terms  of  consumption  values  in 
order  to  be  comparable  with  the  values  of  domestic  products  con- 
sumed. The  importers  sell  the  commodities  not  on  the  basis  of  for- 
eign values,  but,  of  course,  add  the  import  duty  and  also  a  profit, 
which  varies  enormously  for  the  different  articles.  Some  sales  are 
made  direct  to  manufacturer's,  some  to  jobbers,  and  some  to  retail 
dealers,  with  different  terms  in  the  several  cases.  An  accurate  valua- 
tion of  the  "  consumption  "  of  the  imported  articles  thus  becomes  a 
highly  complicated  matter. 


16 

Moreover,  the  language  of  the  clause  is  not  entirely  clear.  It  might 
be  interpreted  to  mean  that  each  article  mentioned  by  name  in  Group 
II  and  each  class  of  articles  mentioned  in  Group  III  is  to  be  consid- 
ered separately  and  that  each  article  or  class  is  to  be  dealt  with  sepa- 
rately. Under  such  an  interpretation  it  might  result,  for  example, 
that  60  per  cent  of  the  domestic  consumption  of  aniline  (an  inter- 
mediate) is  being  made  in  the  United  States,  and  that,  therefore, 
aniline  would  remain  subject  to  the  specific  duty;  whereas  other  in- 
termediates produced  and  derived  from  aniline  might  not  be  subject 
to  the  specific  duty.  Unexpected  and  undesirable  maladjustments 
would  arise  in  the  relation  of  duty  between  different  raw  materials 
and  between  raw  materials  and  finished  products. 

Another  interpretation  of  this  clause  would  be  to  consider  Group 
II,  intermediates,  as  one  unit,  and  Group  III,  finished  products,  as  a 
separate  unit.  If  so  interpreted,  it  is  probable  that  the  act  would  be 
least  difficult  of  administration;  yet  it  is  doubtful  whether  its  lan- 
guage would  justify  this  interpretation. 

Still  another  way  to  interpret  the  language  would  be  to  treat 
Groups  II  and  III  as  one  whole,  adding  the  total  production  in  the 
two  classes  and  comparing  this  total  with  the  total  valuation  of  im- 
ports. This  would  seem  a  proper  interpretation  of  the  language  of 
the  act  as  it  stands.  It  would,  however,  cause  the  articles  in  Group 
II  to  be  virtually  counted  twice,  or,  in  some  cases,  even  four  or  five 
times.  These  articles  (intermediates)  are  used  in  the  manufacture 
of  intermediates  of  a  more  advanced  stage,  and  eventually  in  that 
of  the  finished  articles  in  Group  III,  and  form  a  constituent  part  of 
the  value  of  the  finished  articles.  To  count  them  in  Group  II  perhaps 
several  times  and  again  in  valuing  the  commodities  in  Group  III 
would  be  open  to  criticism. 

The  commission  recommends  that  if  the  clause  is  to  be  retained 
it  be  formulated  in  more  precise  terms  by  reckoning  as  the  value  of 
domestic  production  the  total  value  of  commodities  belonging  in 
Group  III  plus  the  value  of  commodities  in  Group  II  not  used  in 
the  manufacture  of  the  finished  articles  in  Group  III.  There  would 
remain,  nevertheless,  difficulties  in  administration  of  the  clause  so 
formulated,  because  of  the  difficulty  of  ascertaining  which  inter- 
mediates have  been  used  in  the  production  of  finished  commodities 
and  which  have  not. 

The  commission  takes  the  liberty  of  suggesting  to  Congress  the 
possibility  of  repealing  entirely,  for  the  present,  this  60  per  cent 
clause.  In  view  of  the  changed  conditions  which  have  arisen  since 
the  entrance  of  the  United  States  into  the  war,  the  clause  may  not 
appear  to  be  so  necessary  a  safeguard  as  it  did  at  the  time  of  its 
enactment. 

Speci-fic  exemption  considered. — In  still  another  direction  the  com- 
mission suggests  that  there  be  further  consideration,  namely,  as  re- 
gards that  clause  in  the  act  of  1916  which  exempts  certain  finished 
dyestuffs,  medicinals,  and  flavors  from  the  specific  duty  of  5  cents  a 
pound.  Most  articles  in  Group  III  are  subject  to  a  duty  of  30  per 
cent  ad  valorem  plus  5  cents  a  pound  specific.  Certain  enumerated 
articles,  however,  are  exempted  from  the  specific  (5  cents)  duty. 
These  are  "  natural  and  synthetic  alizarin  and  dyes  obtained  from 
alizarin,  anthracene,  and  carbazol,  natural  and  synthetic  indigo,  and 


17 

all  indi<roicls,  whether  or  not  obtained  from  indigo,  and  medicinals 
and  flavors."  The  class  of  dyes  thus  exempted  from  the  specific  duty 
are  important  and  much  used. 

Natural  alizarin  obtained  from  the  madder  plant  had  been  used 
for  centuries.  It  was  the  first  of  the  natural  dyes  to  be  made  from 
coal  tar  (18G8).  The  artificial  alizarin  obtained  from  anthracene 
(itself  extracted  from  coal  tar)  has  ahnost  driven  the  natural  aliz- 
arin out  of  use,  and  numerous  important  derivatives  have  been  made. 
The  dyes  are  used  on  both  wool  and  cotton  and*  are  very  fast  and  of 
good  (juality. 

The  fastest  and  best  cotton  dyes  known  ("  indanthi-ene"  and  re- 
lated dyes)  are  "obtained  from  anthracene  and  carbazol  "  and  there- 
fore exeni}:)ted  from  the  specific  duty.  This  class  of  dyes  can  be 
made  in  neariv  all  shades  and  they  are  especially  suited  to  the 
numufacture  ol  ginghams.  Indigo  is  the  most  important  of  all  the 
excepted  dyes.  How  many  dyes  w^ill  be  further  exempted  under  the 
term  "indigoids''  is  uncertain.  The  term  indigoid  has  no  common 
and  generally  accepted  scientific  or  commercial  meaning.  It  can  only 
mean  a  dye  similar  to  indigo;  but  the  degree  of  similarity  and  the 
question  whether  the  similarity  involved  is  in  chemical  structure,  in 
method  of  manufacture,  or  in  method  of  dyeing  must  be  settled  by 
future  court  decisions. 

The  American  dye  industry  is  especially  backward  in  the  develop- 
ment of  the  very  classes  of  dyes  which  are  exempted  from  the  5  cents 
per  pound  specific  duty.  The  production  of  indigo  in  the  United 
States  during  1917  was  only  -274,771  pounds,  or  3.5  per  cent  of  the 
imports  during  the  fiscal  year  ending  June  30.  1914.  A  much  larger 
production  of  indigo  during  1918  is  assured.  In  addition  to  indigo 
three  other  dyes  belonging  to  the  classes  exempted  from  the  specific 
duties  were  made  in  the  United  States  during  1917,  but  the  amounts 
produced  were  so  small  that  the  production  must  ]be  regarded  as 
experimental  rather  than  commercial.  Many  so-called  "  alizarin  "  or 
"  anthracene '"  dyes  were  made,  but  these  names  are  deceptive,  since 
with  the  exceptions  just  noted  they  were  not  "obtained  from  alizarin 
or  anthracene." 

The  reasons  for  the  lack  of  development  of  these  branches  of  the 
American  industry  are  complex.  They  are  (1)  patent  difficulties, 
(2)  technical.  (3)  connected  with  tariff  and  the  commercial  situation. 

(1)  German  control  of  the  patents  has  prevented  the  manufacture 
of  many  of  these  dyes  in  the  United  States.  Under  the  provisions 
of  the  Trading  with  the  Enemy  Act  of  October  6,  1917,  the  Federal 
Trade  Commission  is  authorized  to  issue  licenses  to  American  manu- 
facturers. Licenses  have  already  been  issued  to  manufacture  several 
medicinals  and  dyes.  German-owned  patents  are  no  longer  an  ob- 
stacle to  the  development  of  the  American  industry.  In  England 
these  German  ])atents  were  annulled  soon  after  the  outbreak  of  the 
war  and  the  English  are  now  making  these  dyes. 

(2)  The  manufacture  of  these  newer  dyes  is  technically  more  diffi- 
cult than  the  manufacture  of  the  azo  dyes — i.  e.,  the  older  nonpat- 
ented  dyes  whose  manufacture  has  been  developed  here.  It  is,  there- 
fore, unfortunate  that  the  American  manufacturers  have  been  com- 
pelled by  the  patent  laws  to  lose  valuable  time  in  gaining  manufactur- 
ing experience  in  the  new  field. 

94582—18 2 


18 

(3)  The  same  differentiation  in  the . treatment  of  the  various 
classes  of  dyes  which  appears  in  the  act  of  1916  is  traceable  in  earlier 
acts  in  an  even  more  pronounced  form.  The  classes  of  dyes  now 
dutiable  at  30  per  cent  (but  not  subject  to  the  5  cents  specific  duty) 
were  admitted  free  under  the  act  of  1913,  whereas  those  now  dutiable 
at  30  per  cent  plus  5  cents  per  pound  were  formerly  dutiable  at  30 
per  cent.  The  American  dye  industry  before  the  war  was,  therefore, 
concentrated  entirely  in  the  manufacture  of  dyes  of  the  classes  for- 
merly dutiable  (such  as  the  azo  colors  derived  from  anilin  and 
benzidine). 

When  the  European  war  began  the  American  manufacturers  were 
confronted  with  the  problem  of  multiplying  their  output  in  the 
minimum  time,  and  they  naturally  followed  the  line  of  least  resist- 
ance by  increasing  their  output  of  the  anilin  and  similar  dyes  with 
which  they  had  actual  manufacturing  experience  instead  of  by  taking 
up  new  and  strange  dyes  with  their  unsolved  technical  problems. 
An  additional  reason  for  the  development  of  these  anilin  dyes  was 
that  the  necessary  crudes  and  intermediates  were  more  readily  pro- 
duced in  the  United  States.  On  the  other  hand,  the  separation  of 
anthracene  (the  fundamental  material  for  alizarin)  from  Ameri- 
can tar  in  a  condition  pure  enough  for  making  alizarin  had  not 
been  developed  commercially  in  the  United  States  at  the  outbreak  of 
the  war.  The  separation  of  anthracene  and  carbazol  from  the  tar 
is  far  more  difficult  technically  than  the  recovery  of  benzol,  toluol, 
and  naphthalene,  which  are  the  materials  from  which  nearly  all  the 
dyes  now  made  in  the  United  States  are  derived.  It  was  only  in 
midsummer  of  1917  that  anthracene  became  available  in  significant 
amounts  in  the  American  market.  This  has  been  the  chief  obstacle  in 
the  development  of  alizarin  manufacture  in  the  United  States,  an 
obstacle  which  is  now  about  to  be  overcome. 

The  exemption  of  alizarin  and  indigo  from  the  special  duty  of  5 
cents  per  pound  in  the  act  of  1916  partly  accounts  for  the  relatively 
slow  development  of  these  branches  of  the  dye  industry  in  the 
United  States,  but  this  has  been  heretofore  a  less  important  factor 
than  the  others  just  described,  especially  the  patent  situation  and  the 
lack  of  anthracene.  Very  recently  the  other  obstacles  to  development 
have  been  removed. 

In  order  that  the  American  dyestuff  industry  may  be  in  a  position 
to  compete  with  the  German  when  peace  is  restored  the  dyes  most 
in  demand  should  be  made  in  this  country,  especially  indigo,  ali- 
zarin, and  the  vat  dyes  derived  from  anthracene.  There  can  be  no 
doubt  that  the  consumers  (the  American  textile  mills)  will  return 
to  the  use  of  these  newer  and  better  dyes  when  supplies  are  again 
available.  Unless  the  American  dye  manufacturers  are  in  a  posi- 
tion to  satisfy  this  demand  the  consumers  will  once  more  become  de- 
pendent on  foreign  supplies. 

Now  that  American  supplies  of  anthracene  are  available  and  pat- 
ent licenses  are  obtainable  there  are  no  longer  any  fundamental 
obstacles  in  the  path  of  the  American  manufacturers.  The  equaliza- 
tion of  the  rates  of  duty  on  the  different  varieties  of  dyes  would  be  a 
valuable  aid  to  the  growth  of  a  hitherto  backward  branch.  It  would 
allow  the  normal  development  of  the  industry,  with  a  natural  adjust- 
ment between  the  different  dyes  determined  on  the  one  hand  by  the 


19 

cost  of  production  of  the  different  dyes  and  on  the  other  hand  by  the 
demand,  which  is  dependent  on  the  fastness,  color,  and  adapta- 
bility to  different  uses. 

In  view  of  the  industrial  changes  that  have  been  pointed  out  Con- 
gi-ess  may  wish  to  reconsider  the  clause  in  the  existing  law  exempting 
certain  classes  of  dyes  from  the  specific  duty. 

Synthetic  tanning  material. — The  commission  also  deems  it  advis- 
able to  call  the  attention  of  Congress  to  a  recent  discovery  which 
may  have  important  commercial  developments  in  the  near  future. 
The  manufacture  of  synthetic  tanning  materials  from  phenol,  for- 
maldehyde, and  sulphuric  acid  has  recently  been  patented  in  the 
United 'states  and  the  patents  assigned  to  a  German  firm  at  the  time 
of  issue.  There  are  five  of  these  patents,  the  first  of  which  was  issued 
on  March  10,  1914,  and  the  last  on  January  22,  1918.  Tests  made 
by  American  chemists  indicate  that  this  new  tanning  material  has 
a  promising  future.  It  appears  to  have  some  valuable  properties 
not  possessed  by  any  of  the  vegetable  tanning  materials  now  in  use. 
The  development  of  this  industry  would  also  be  imp^ortant  from  a 
military  point  of  view  on  account  of  its  consumption  of  phenol. 
Phenol  is  used  for  the  manufacture  of  the  military  explosives,  picric 
acid  and  ammonium  picrate.  A  large  synthetic  phenol  industry  has 
been  developed  in  the  United  States,  as  well  as  in  Europe,  since  the  out- 
break of  the  European  war  to  supply  the  demand  for  phenol  for  mili- 
tary purposes.  Large  producers  of  phenol  are  interested  in  the  new 
tanning  discovery  as  a  possible  means  of  utilizing  the  existing  phenol 
plants  when  the  demand  for  military  explosives  disappears.  Unless 
and  until  international  relations  are  so  adjusted  that  military  con- 
siderations can  be  safely  ignored  it  is  important  from  a  military 
point  of  view  that  plants  making  phenol  and  consuming  it  for  normal 
industrial  purposes  be  in  operation  in  the  United  States  during  times 
of  peace  on  as  large  a  scale  as  possible.  In  the  event  of  war  such 
plants  could  supply  a  raw  material  needed  for  making  explosives, 
and  are,  therefore,  a  military  asset.  Since  the  patents  on  this  process 
are  now  held  by  a  German  firm,  licenses  can  be  secured  by  all  Arneri- 
can  manufacturers  who  are  prepared  to  comply  with  the  conditions 
of  the  Trading  with  the  Enemy  Act,  and  therefore  a  duty  on  these 
materials  would  not  be  for  the  benefit  of  a  single  producer. 

The  new  synthetic  tanning  materials  present  a  close  analogy  with 
the  synthetic  phenolic  resins  now  provided  for  in  Group  III.  These 
resins  are  made  by  the  chemical  combination  of  phenol  and  formalde- 
hyde in  the  presence  of  alkali.  The  combination  of  phenol  and  for- 
maldehyde in  the  presence  of  sulphuric  acid  yields  the  synthetic 
tanning  materials.  The  synthetic  phenolic  resins  were  discovered 
and  developed  by  American  chemists  and  have  become  of  great  com- 
mercial importance.  The  synthetic  tanning  materials  were  discov- 
ered about  1912  by  an  Austrian  chemist  and  were  put  on  the  market 
several  years  ago  by  a  German  firm.  Since  the  outbreak  of  the  war 
several  English  firms  have  begun  their  manufacture.  Commercial 
development  in  the  United  States  has  been  delayed  and  has  only  just 
begun  on  account  of  German  control  of  the  patents,  but  this  obstacle 
need  no  longer  delay  manufacturers  here.  We,  therefore,  call  atten- 
tion to  the  possible  expediency  of  adding  "  synthetic  tanning  mate- 
rials "  in  Group  III,  after  the  words  "  synthetic  phenolic  resin." 


20 

The  commission  submits  herewith  the  draft  of  a  bill  which  is  sug- 
gested as  a  substitute  for  Title  V  of  the  act  of  Septemb,er  8,  1916. 

The  reasons  for  the  proposed  changes,  other  than  those  discussed 
above,  are  given  in  detail  in  the  accompanying  report,  prepared  by 
Dr.  Grinnell  Jones,  special  expert  of  our  staff.  This  report  also  con- 
tains some  additional  technical  information  in  regard  to  the  questions 
discussed  above. 

In  conclusion,  it  should  be  said  that  this  report  deals  only  with  the 
act  of  September  8,  1916,  with  the  coal-tar  and  dyestuffs  industries 
as  affected  by  that  act,  and  with  the  ways  of  carrying  out  the  pre- 
sumable intent  of  Congress  when  passing  the  act.  The  act  was 
designed  to  promote  the  development  of  the  American  coal-tar  and 
dyestuffs  industries  in  a  well-defined  plan,  but  contains  some  provi- 
sions which  experience  and  further  scrutiny  have  shown  to  be  incon- 
sistent with  that  general  plan. 

The  commission,  however,  is  making  a  careful  study  of  the  eco- 
nomic and  industrial  conditions  of  the  chemical  industries  in  general 
and  will  submit  its  report  to  Congress  on  this  subject  at  a  later  date. 
The  report  will  aim  to  furnish  further  information  for  the  assistance 
of  Congress  in  determining  what  changes  Congress  may  wish  to  make 
in  Schedule  A  of  the  existing  tariff  law  (chemicals,  oils,  paints). 

F.  W.  Taussig,  Chairman. 

Thomas  Walker  Page,  Vice  Chairman. 

David  J*.  Lewis. 

William  Kent. 

William  S.  Culbertson. 

Edward  P.  Costigan. 


DRAFT  OF  A  BILL  TO  AMEND  TITLE  V  OF  THE 
ACT  OF  SEPTEMBER  8,  1916 


(21) 


A  BILL  TO  AMEND  AN  ACT  ENTITLED  "AN  ACT  TO  INCREASE  THE 
REVENUE,  AND  FOR  OTHER  PURPOSES,"  APPROVED  SEPTEMBER 
8,  1916. 

Be  it  enacted  hy  the  Senate  and  House  of  Bepresenfatives  of  the 
United  States  of  America  in  Congress  assembled,  That  Title  V  of  an 
act  entitled  "An  act  to  increase  the  revenue,  and  for  other  purposes," 
approved  September  8,  1916,  be,  and  hereby  is,  amended  to  read  as 
follows : 

.     .  Title  V. — Dijestuffs. 

Sec.  500.  That  on  and  after  the  day  following  the  passage  of  this 
act,  except  as  otherwise  specially  provided  for  in  this  title,  there 
shall  be  levied,  collected,  and  paid  upon  the  articles  named  in  this 
section  when  imported  from  any  foreign  country  into  the  United 
States  or  any  of  its  possessions,  except  the  Philippine  Islands  and 
the  islands  of  Guam  and  Tutuila,  the  rates  of  duties  which  are  pre- 
scribed in  this  title,  namely : 

FREE  LIST. 

4 

Group  I.  Acenaphthene,  anthracene  having  a  purity  of  less  than 
thirty  per  centum,  benzol,  carbazol  having  a  purity  of  less  than  sixty- 
five  per  centum,  cumol,  cymene,  fluorene,  methylanthracene.  methyl- 
naphthalene,  naphthalene  having  a  solidifying  point  less  than  sev- 
enty-nine degrees  centigrade,  pyridin,  quinolin,  toluol,  xylol,  dead  or 
creosote  oil,  anthracene  oil,  pitch  of  coal  tar,  pitch  of  blast-furnace 
tar,  pitch  of  oil-gas  tar,  pitch  of  water-gas  tar,  crude  coal  tar,  crude 
blast-furnace  tar,  crude  oil-gas  tar,  crude  water-gas  tar,  all  other 
distillates  of  any  of  these  tars  which  on  being  subjected  to  distilla- 
tion yield  in  the  portion  distilling  below  one  hundred  and  ninety  de- 
gi-ees  centiorade  a  quantity  of  tar  acids  less  than  five  per  centum  of 
the  original  distillate,  all  mixtures  of  any  of  these  distillates  and  any 
of  the  foregoing  pitches,  and  all  other  products  that  are  found  natu- 
rally in  coal  tar,  whether  produced  or  obtained  from  coal  tar  or 
other  source,  and  not  otherwise  specially  provided  for  in  this  title, 
shall  be  exempt  from  duty. 

DUTIABLE  LIST. 

Group  II.  Acetanilid  not  suitable  for  medicinal  use,  alphanaphthol, 
amidobenzoic  acid,  amidonaphthol,  amidophenetol,  amidophenol, 
amidosalicylic  acid,  aniinoanthraquinone,  anilin  oil,  anilin  salt, 
anthraquinone,  arsanilic  acid,  benzaldohyde  niet  suitable  for  medicinal 
use,  benzalchloride,  benzanthrone,  benzidin,  benzidin  sulphate,  ben- 
zoic acid  not  suitable  for  medicinal  use,  benzoquinone,  benzovlr^blnr- 

(23) 


ide.  benzylchloride,  betanaphthol  not  suitable  for  medicinal  use, 
brombenzol.  chlorbenzol,  chlorophthalic  acid,  cinnamic  acid,  cumi- 
din.  dehydrothiotoluidin.  diaminostilbene^  dianisidin,  dichlor- 
phthalic  acid,  dimethylanilin,  dimethylamidophenol,  dimethylpheny- 
Icnediamin.  dinitrobenzol,  dinitrochlorbenzol,  dinitronaphthalene, 
dinitrophenol,  dinitrotoliiol,  dioxynaphtlialene,  diphenylaniin.  ethyl- 
benzyl  anilin.  hydroxyphenylarsinic  acid,  metanilic  acid,  niethylan- 
thraquinone,  naphtliylamin.  naphthylenediamin.  nitranilin.  ijitro- 
anthraqiiinone.  nitrobenzaldehyde.  nitrobenzol,  nitronaplithalene, 
nitrophenol,  nitrophenylenediamin.  nitrosodiniethylanilin.  nitro- 
toluol,  nitrotohiylenediamin.  phenol,  phenylenediamin.  phenyl- 
hydrazine,  phenylnaphthylamin,  phenylglycocoll.  phenylglYcocoll- 
orthocarboxylic  acid,  phthalic  acid,  phthalic  anhydride,  phtlialiniid, 
rcsorcin  not  suitable  for  medicinal  use.  salicylic  acid  and  its  salts 
not  suitable  for  medicinal  use.  sulplianilic  acid,  thiocarbanilid, 
thiosalicylic  acid,  tetrachlorphthalic  acid,  tetramethyldiaminoben- 
zophenone.  tetramethyldiaminodiphenylmethane,  toluol  sulphochlor- 
ide,  toluol  sulphamid,  tribromphenol.  toluidin,  tolidin.  toluylenedi- 
amin.  xylidin,  or  any  sulphoacid  or  sulphoacid  salt  of  any  of  the 
foregoing,  or  of  any  of  the  products  provided  for  in  Group  I:  all 
other  products  by  whatever  name  known  which  are  employed  in 
the  manufacture  of  any  of  the  products  provided  for  in  Group  II 
or  III  and  which  are  obtained,  derived,  or  manufactured  in  whole 
or  in  part  from  any  of  the  foregoing  or  from  any  of  the  products 
provided  for  in  Group  I :  anthracene  having  a  purity  of  thirty  per 
centum  or  more,  carbazol  having  a  purity  of  sixty-five  per  centum 
or  more,  metacresol  having  a  puritr  of  ninety  per  cenUim  or  more, 
naphthalene  having  a  solidifying  point  of  seventv-nine  degrees  centi- 
grade or  above,  orthocresol  having  a  purity  o^  ninety  per  centum 
or  more,  paracresol  having  a  purity  of  ninety  per  centum  or  more;, 
all  distillates  of  coal  tar.  blast-furnace  tar.  oil-gas  tar.  and  water- 
gas  tar  which  on  being  subjected  to  distillation  yield  in  the  portion 
distilling  below  one  hundred  and  ninety  degrees  centigrade  a  quantity 
of  tar  acids  equal  to  or  more  than  five  per  centum  of  the  original 
distillate;  all  mixtures,  including  solutions,  consisting  in  whole  or 
in  part  of  any  of  the  foregoing  except  sheep  dip  and  medicinal  soaps, 
not  otherwise  specially  provided  for  in  this  act ;  all  the  foregoing  not 
colors,  dyes,  or  stains,  color  acids,  color  bases,  color  lakes,  leuco- 
acids,  leuco-bases,  indoxyl.  indoxyl  compounds,  ink  powders,  photo- 
graphic chemicals,  medicinals.  flavors,  synthetic  resinlike  products, 
synthetic  tanning  materials,  or  explosives',  and  not  otherwise  specially 
provided  for  in  this  title,  fifteen  per  centum  ad  valorem. 

Group  III.  All  colors,  dyes,  or  stains,  whether  soluble  or  not  in 
water,  color  acids,  color  bases,  color  lakes,  leuco-acids  and  leuco-bases 
whether  colorless  or  not,  indoxyl  and  indoxyl  compounds:  ink  pow- 
ders; photographic  chemicals:  acetanilid  suitable  for  medicinal  use, 
acetphenetidin,  acetylsalicylic  acid,  antipyrine,  benzaldehyde  suitable 
for  medicinal  use.  benzoic  acid  suitable  for  medicinal  use,  betanaphthol 
suitable  for  medicinal  use.  phenolphthalein,  resorcin  suitable  for 
medicinal  use.  salicylic  acid  and  its  salts  suitable  for  medicinal  use, 
salol.  and  other  medicinals;  sodium  benzoate;  saccharin,  methyl 
salicjdat^,  coumarin,  and  other  flavors;  synthetic  phenolic  resin  and 
all  resinlike  products  prepared  from  phenol,  cresol,  phthalic  anhy- 


25 

(Iricle,  coumaron,  indeiie,  or  from  any  other  artick  or  material  pro- 
\  ided  for  in  Group  1  or  II,  all  of  these  products  whether  in  a  solid, 
semisolid,  or  liquid  condition;  synthetic  tanning  materials;  picric 
acid,  trinitrotoluol,  and  other  explosives  except  smokeless  powders; 
all  of  the  foregoing  when  obtained,  derived,  or  manufactured  in 
whole  or  in  part  from  any  of  the  products  provided  for  in  Group 
I  or  II ;  natural  alizarin  aiid  natural  indigo,  and  colors,  dyes,  stains, 
color  acids,  color  bases,  color  lakes,  ieuco-acids,  leuco-bases,  indoxyl, 
and  indoxyl  compounds  obtained,  derived,  or  manufactured  in  whole 
or  in  part  from  natural  alizarin  or  natural  indigo;  natural  methyl 
salicylate  or  oil  of  wintergreen  or  oil  of  sweet  birch;  natural  cou- 
mari'n;  and  all  mixtures,  including  solutions,  consisting  in  whole  or 
in  part  of  any  of  the  articles  or  luaterials  provided  for  in  this  group, 
thirty  per  centum  ad  valorem. 

Sec,  501.  That  on  and  after  the  day  following  the  passage  of  this 
act,  in  addition  to  the  duties  provided  in  section  five  hundred,  there 
shall  be  levied,  collected,  and  paid  upon  all  articles  contained  in 
Group  II  a  special  duty  of  2i  cents  per  pound,  and  upon  all  articles 
contained  in  Group  III  a  special  duty  of  5  cents  per  pound:  Pro- 
vided, That  the  special  duties  herein  provided  for  on  colors,  dyes,  or 
stains,  whether  soluble  or  not  in  water,  color  acids,  color  bases,  color 
lakes,  Ieuco-acids,  leuco-bases,  indoxyl  and  indoxyl  compounds,  shall 
be  based  on  standards  of  strength  which  shall  be  established  by  the 
Secretary  of  the  Treasury,  and  that  upon  all  importations  of  such 
articles  which  exceed  such  standards  of  strength  the  special  duty  of 
5  cents  per  pound  shall  be  computed  on  the  weight  which  the  article 
would  have  if  it  were  diluted  to  the  standard  strength,  but  in  no  case 
siiall  any  «uch  articles  of  whatever  strength  pay  a  special  duty  of 
less  than  5  cents  per  pound:  Provided  further^  That  beginning  six 
months  aftef  the  date  of  passage  of  this  act  no  package  containing 
any  such  color,  dye,  stain,  color  acid,  color  base,  color  lake,  leuco- 
acid,  leuco-base,  indoxyl,  or  indoxyl  compound  shall  be  admitted  to 
entry  into  the  United  Stntes  unless  such  package  and  the  invoice 
shall  bear  a  plain,  conspicuous,  and  truly  descriptive  statement  of  the 
identity  and  percentage,  exclusive  of  diluents,  of  such  color,  dye, 
stain,  color  acid,  color  base,  color  lake,  leuco-acid,  leuco-base,  in- 
doxyl, or  indoxyl  compound  contained  therein:  And  provided  fur- 
ther. That  beginning  six  months  after  the  date  of  passage  of  this  act, 
no  package  containing  any  such  article  shall  be  admitted  to  entry  into 
the  United  States  if  it,  or  the  invoice  bears  any  statement,  design,  or 
device  regarding  such  article  or  the  ingredients  or  substances  con- 
tained therein  which  is  false,  fraudulent,  or  misleading  in  any  j^artic- 
ular.  In  the  enforcement  of  this  section  the  Secretary  of  the  Treas- 
ury shall  adopt  standards  of  strength  which  shall  conform  as  nearly 
as  practicable  to  the  commercial  strengths  in  use  in  the  United  States 
prior  to  July  first,  nineteen  hundred  and  fourteen. 

Beginning  September  ninth,  nineteen  hundred  and  twenty-one, 
such  special  duties  shall  be  annually  reduced  by  twentv  per  centum 
of  the  rate  imposed  by  this  section  until  September  eighth,  nineteen 
hundred  and  twenty-five,  after  which  date  such  special  duties  shall 
no  longer  be  assessed,  levied,  or  collected. 

The  Secretary  of  the  Treasury  is  herebv  authorized  to  make  regu- 
lations for  the  enforcement  of  the  provisions  of  this  title. 


26 

Sec.  502.  That  paragraphs  twenty,  twenty-one,  twenty-two,  twenty- 
three,  one  hundred  and  seventy-nine,  three  hundred  and  ninety- 
four,  four  hundred  and  fifty-two,  and  five  hundred  and  fourteen ;  and 
the  provision  for  salicylic  acid  in  paragraph  one;  and  provisions 
for  salol,  phenolphthalein,  acetanilid,  acetphenetidin,  antipyrine, 
acetylsalicylic  acid,  and  aspirin  in  paragraph  eighteen ;  and  the  pro- 
vision for  benzoate  of  soda  in  paragraph  sixty-seven;  and  the  pro- 
visions for  carbolic  and  phthalic  acids  in  paragraph  three  hundred 
and  eighty-seven  of  an  act  entitled  "An  act  to  reduce  tariff  duties 
and  to  provide  revenue  for  the  Government,  and  for  other  purposes," 
approved  October  third,  nineteen  hundred  and  thirteen,  are  hereby 
repealed:  Provided^  That  all  articles  which  may  come  within  the 
terms  of  paragraphs  one,  five,  thirty-seven,  forty-six,  sixty-three, 
five  hundred  and  one,  and  five  hundred  and  thirty-eight  of  said  act 
of  October  third,  nineteen  hundred  and  thirteen,  as  well  as  within  the 
terms  of  Group  I,  II,  or  III  of  section  five  hundred  of  this  act,  shall 
be  assessed  for  duty  or  exempted  from  duty,  as  the  case  may  be, 
under  this  act. 

Sec.  503.  That  on  and  after  the  day  when  this  act  shall  go  into 
effect  all  of  the  foregoing  goods,  wares,  and  merchandise  previously 
imported,  for  which  no  entry  has  been  made,  and  all  of  the  foregoing 
goods,  wares,  and  merchandise  previously  entered  without  payment 
of  duty  and  under  bond  for  warehousing,  transportation,  or  any 
other  purpose,  for  which  no  permit  of  delivery  to  the  importer  or 
his  agent  has  been  issued,  shall  be  subject  to  the  duties  imposed  by 
this  act,  and  to  no  other  duty,  upon  the  entry  or  the  withdrawal 
thereof:  Provided^  That  when  duties  are  based  upon  the  weight  of 
merchandise  deposited  in  any  public  or 'private  bonded 'warehouse 
said  duties  shall  be  levied  and  collected  upon  the  weight  of  such 
merchandise  at  the  time  of  its  entry. 

Sec.  504.  Except  as  otherwise  herein  specially  provided,  this  act 
shall  take  effect  on  the  day  following  its  passage. 


TEXT  OF  TITLE  V  OF  THE  ACT  OF 
SEPTEMBER  8,  1916 


(27) 


TEXT  OF  TITLE  V  OF  ACT  OF  SEPTEMBER  8,  1916. 


The  act  of  Congress  approved  September  8,  1916,  entitled  "An 

act  to  increase  the  revenue,  and  for  other  purposes  "  contains  the  f ol- 

lowina;  provisions  in  reo:ar(l  to  duties  on  dyestuffs  and  other  coal-tar 

products : 

Title  V. — Dyestujfs. 

Sec.  500.  That  on  and  after  the  day  following;  the  passage  of  this 
act,  except  as  otherwise  specially  provided  for  in  this  title,  there 
shall  be  levied,  collected,  and  paid  upon  the  articles  named  in  this 
section  when  imported  from  anv  foreign  country  into  the  United 
States  or  into  any  of  its  possessions,  except  the  Philippine  Islands 
and  the  islands  of  Guam  and  Tutuila,  the  rates  of  duties  which  are 
prescribed  in  this  title,  namely  : 

FREE  LIST. 

Group  I.  Acenaphthene,  anthracene  having  a  purity  of  less  than 
twenty-five  per  centum,  benzol,  carbazol  having  a  purity  of  less  than 
twenty-five  per  centum,  cresol,  cumol,  fluorene,  metacresol  having  a 
purity  of  less  than  ninety  per  centum,  methylanthracene,  methyl- 
naphthalene,  naphthalene  having  a  solidifying  point  less  than  sev- 
enty-nine degrees  centigrade,  orthocresol  having  a  purity  of  less  than 
ninety  per  centum,  paracresol  having  a  purity  of  less  than  ninety  per 
centum,  pyridin,  quinolin,  toluol,  xylol,  crude  coal  tar,  pitch  of  coal 
tar,  dead  or  creosote  oil.  anthracene  oil,  all  other  distillates  which  on 
being  subjected  to  distillation  yield  in  the  portion  distilling  below 
two  hundred  degrees  centigrade  a  quantity  of  tar  acids  less  than  five 
per  centum  of  the  original  distillate,  and  all  other  products  that  are 
found  naturally  in  coal  tar,  whether  produced  or  obtained  from  coal 
tar  or  other  source,  and  not  otherwise  specially  provided  for  in  this 
title,  shall  be  exempt  from  duty. 

DUTIABLE  LIST. 

Group II.  Amidonaphthol,amidonaphenol,amidosalicylicacid,anilin 
oil,  anilin  salts,  anthracene  having  a  purity  of  twenty-five  per  centum 
or  more,  anthraquinone,  benzoic  acid,  benzaldehyde,  benzylchloride, 
benzidin,  binitrobenzol,  binitrochlorobenzol,  binitronaphthalene,  bini- 
trotoluol,  carbazol  having  a  purity  of  twenty-five  per  centum  or  more, 
chlorophthalic  acid,  cumidin,  dimethylanilin,  dianisidin,  dioxynaph- 
thalene,  diphenylaimin,  metacresol  having  a  purity  of  ninety  per 
centum  or  more,  methylanthraquinone,  metanilic  acid,  naphthalene 
having  a  solidifying  point  of  sevonty-nine  degrees  centigrade  or 
above,  naphthylamin,  naphthol,  naphthylenediamin,  nitrobenzol, 
nitrotoluol,  nitronaphthalene,  nitranilin,  nitrophenylenediamin, 
nitrotoluylenediamin,  orthocresol  having  a  purity  of  ninety  per 
centum  or  more,  paracresol  having  a  purity  of  ninety  per  centum  or 

(29) 


30 

more,  phenol,  phthalic  acid,  phthalic  anhydride,  phenylenediamin, 
phenylnaphthylamin,  resorcin,  salicylic  acid,  siilphanilic  acid, 
toluidin,  tolidin,  toliiylenediamin,  xylidin,  or  any  sulphoacid  or 
sulphoacid  salt  of  any  of  the  foregoing,  all  similar  products  ob- 
tained, derived,  or  manufactured  in  whole  or  in  part  from  the  prod- 
ucts provided  for  in  Group  I,  and  all  distillates  which  on  being  sub- 
jected to  distillation  yield  in  ihe  portion  distilling  below  two  hun- 
dred degrees  centigrade  a  quantity  of  tar  acids  equal  to  or  more  than 
five  per  centum  of  the  original  distillate,  all  the  foregoing  not  colore, 
dyes,  or  stains,  photographic  chemicals,  medicinals,  flavors,  or  ex- 
plosives, and  not  otherwise  provided  for  in  this  title,  and  provided 
for  in  the  paragraphs  of  the  act  of  October  third,  nineteen  hundred 
and  thirteen,  which  are  hereinafter  specifically  repealed  by  section 
five  hundred  and  two,  fifteen  per  centum  ad  valorem. 

Group  III.  All  colors,  dyes,  or  stains,  whether  soluble  or  not  in 
water,  color  acids,  color  bases,  color  lakes,  photographic  chemicals, 
medicinals,  flavors,  synthetic  phenolic  resin,  or  explosives,  not- 
otherwise  specially  provided  for  in  this  title,  when  obtained,  derived, 
or  manufactured  in  whole  or  in  part  from  any  of  the  products  pro- 
vided for  in  Groups  I  and  II,  natural  alizarin  and  indigo,  and  colors, 
dyes,  or  color  lakes  obtained,  derived,  or  manufactured  therefrom, 
thirty  per  centum  ad  valorem. 

Sec.  501.  That  on  and  after  the  day  following  the  passage  of  this 
act,  in  addition  to  the  duties  provided  in  section  five  hundred,  there 
shall  be  levied,  collected,  and  paid  upon  all  articles  contained  in 
Group  II  a  special  duty  of  2^  cents  per  pound,  and  upon  all  articles 
contained  in  Group  III  (except  natural  and  synthetic  alizarin,  and 
dyes  obtained  from  alizarin,  anthracene,  and  carbazol;  natural  and 
synthetic  indigo  and  all  indigoids,  whether  or  not  obtained  from 
indigo;  and  medicinals  and  flavors),  a  special  duty  of  5  cents  per 
pound. 

During  the  period  of  five  years  beginning  five  years  after  the 
passage  of  this  act  such  special  duties  shall  be  annually  reduced  by 
twenty  per  centum  of  the  rate  imposed  by  this  section,  so  that  at  the 
end  of  such  period  such  special  duties  shall  no  longer  be  assessed, 
levied,  or  collected ;  but  if,  at  the  expiration  of  five  years  from  the 
date  of  the  passage  of  this  act,  the  President  finds  that  there  is  not 
being  manufactured  or  produced  within  the  United  States  as  much 
as  sixty  per  centum  in  value  of  the  domestic  consumption  of  the 
articles  mentioned  in  Groups  II  and  III  of  section  fi^-e  hundred,  he 
shall  by  proclamation  so  declare,  whereupon  the  special  duties  im- 
posed by  this  section  on  such  articles  shall  no  longer  be  assessed, 
levied,  or  collected. 

Sec.  502.  That  paragraphs  twenty,  twenty-one,  twenty-two,  and 
twenty-three  and  the  words  "salicylic  acid"  in  paragraph  one  of 
Schedule  A  of  section  one  of  an  act  entitled  "An  act  to  reduce  tariff 
duties  and  to  provide  revenue  for  the  Government,  and  for  other 
purposes,"  approved  October  third,  nineteen  hundred  and  thirteen, 
and  paragraphs  three  hundred  and  ninety-four,  four  hundred  and 
fifty-two,  and  five  hundred  and  fourteen,  and  the  words  "  carbolic  " 
and  "  phthalic,"  in  paragraph  three  hundred  and  eighty-seven  of  the 
"  free  list  "  of  section  one  of  said  act,  and  so  much  of  said  act  or  any 
existing  law  or  parts  of  law  as  may  be  inconsistent  with  this  title,  are 
hereby  repealed. 


TEXT  OF  TITLE  V  OF  THE  ACT  OF  SEPTEMBER  8, 1916 
EDITED  TO  SHOW  PROPOSED  AMENDMENTS 


(31) 


IThp  proposals  for  the  revision  ot  the  dycstuff  tariff  act  of  September  8,  1916.  which 
the  (.■oiiiinission  sugf^osts.  will,  it  is  boliovtd,  be  most  readily  and  clearly  understood 
bv  reproducing  the  orisiual  language  of  the  act  and  indicating  the  changes  by  means 
of  deletions  and  insertions.  In  the  following  form  the  words  omitted  from  the  original 
act  are  ruled  out  and  the  words  inserted  or  substituted  are  italicized.  Special  atten- 
tion is  called  to  the  two  clauses  referred  to  in  the  foregoing  di-cussion  by  i)rinting  in 
small  capitals.  The  figures  in  brackets  [  ]  placed  immediately  before  these  changes 
refer  to  the  numbers  of  the  paragraphs  in  the  discussion  and  the  reasons  for  their 
proposal.] 

A  BILL  TO  AMEND  AN  ACT  ENTITLED  "AN  ACT  TO  INCREASE  THE 
REVENUE,  AND  FOR  OTHER  PURPOSES,"  APPROVED  SEPTEMBER 
8,  1916.  

Be  it  enacted  hy  the  Seiude  and  House  of  Bepresentatives  of  the 
United  States  of  Amenea  in  Congress  assemhled^  That  Title  V  of  an 
act  entitled  "  An  act  to  increase  the  revenue,  and  for  other  purposes," 
approved  September  8,  191G,  be  and  hereby  is  amended  to  read  as 
follows : 

Title  V. — Dyestuffs. 

Sec.  500.  That  on  and  after  the  day  following  the  passage  of  this 
act,  except  as  otherwise  specially  provided  for  in  this  title,  there  shall 
be  levied,  collected,  and  paid  upon  the  articles  named  in  this  section 
when  imported  from  any  foreign  country  into  the  United  States  or 
into  anv  of  its  possessions,  except  the  Philippine  Islands  and  the 
islands  of  Guam  and  Tutuila,  the  rates  of  duties  which  are  prescribed 
in  this  title,  namely: 

FREE    LIST. 

Group  I.  Acenaphthene,  anthracene  having  a  purity  of  less  than 
[.S]  twenty  five  tMrty  per  centum,  benzol,  carbazol  having  a  purity  of 
less  than  [4]  twenty  five  sixty-five  per  centum,  [5]  cr'cool,  cumol, 
[71  cymene,  fluorene'^,  [6]  mctacrcaor  having  a  purity  of  leao  than 
ninety  per  ocntum,  methylanthr;icene,  methylnaphthalene.  naphtha- 
lene having  o  solidifving  "point  loss  than  seventy-nine  degrees  centi- 
grade, [61  eythocro3ol  having  a  purity  of  lo-ia  than  ninety  per  centum, 

quinolin,  toluol,  xylol,  dead  or  creosote  oil,  anthracene  oil.  pitch  of 
coal  tar,  [1]  pitch  of  hlast-furnace  tar,  pitch  of  oil-gas  tar,  pitch  of 
water-gas  tar,  crude  coal  tar,  [1]  crude  blastfurnace  tar,  crude  oil-gas 
tar,  crude  water-gas  tar,  all  other  distillates  [5]  of  any  of  these  tars 
which  on  being  subjoctorl  to  distillation  yield  in  the  portion  distilling 
bolow  [5]  two  hundred  one  hundred  anil  ninety  degrees  centigrade. a 
quantit}'  of  tar  acids  less  than  five  per  centum  of  the  original  distillate, 
[2]  all  inixtures  of  any  of  these  distillates  and  any  of  the  foregoing  pitches, 
and  all  other  products  that  are  found  naturally  in  coal  tar,  whether 
produced  or  obtained  from  coal  tar  or  other  source,  and  not  other- 
wise specially  provided  for  in  this  title,  shall  be  exempt  from  duty. 

DUTIABLE   LIST. 

Group  ir.  [101  Acetanilid    not    suiiaUe    for    medicinal    use,    [11] 

nlpTianaphthol,   [lo]   amidohmzoic  acid,    amidonaphthol,    [13]   amido- 

phenetol,  amidophenol,  amidosalicylic  acid,  [lo]  awinoaniliraquiiwve, 

-anilin  oil,   anilin  [12]  sftits  salt,  anthraquinone,  [13]  arsanilic  acid, 

94582—18 3  (33) 


34 


benzaldehyde  [8]  not  siiitahle  for  viedicinal  use,  [13]  henzalcTilonde, 
lenzantJirone,  benzidin,  [13]  henzidin  sulphate,  benzoic  acid  [8]  not 
suitable  for  medicinal  vse,  [13]  henzoquinone,  benzoylchloride,  ben- 
zylchloride,  [11]  betanaphtJiol  not  suitable  for  medicinal  use,  [13] 
brombenzol.  cJilorbenzol,  chlorophthalic  acid,  [13]  cinnamic  acid,  cumi- 
din,  [13]  dehydrothiotolnidin,  diaminostilbene,  dianisidin,  [IS]  dichlorph- 
tMlicaeid,dimethJ]sinilm.[l3]dimethylamidopJlenolMmethJlphenylene 
diamin,  [12]  binitrobonzoly  dinitrobenzol,  binitroohlorobonzoly  (Zim'^ro- 
cKlorbenzol,  binitronaphthalcnc,  dinitronaphthalene,  [13]  diniiropJienol, 
[12]  binitrotoluol,  dinitrotoluol,  dioxynapbtlialene,  [12]  diplionylai- 
miR,  diphenylamin,  [13]  ethylbenzylanilin,  hydroxy phenylarsinic  acid, 
metanilic  acid,  metliylanthraquinone,  [11]  naplithol,  naphthylamin, 
naphthylendiamin,  nitranilin,  [13]  nitroanihraquinone ,  iiitrobenzalde- 
Jiyde,  nitrobeazol,  aitronaphtlaaleiie,  [13]  nitrophenol,  nitro  phenyl  one - 
diamin,  [13]  mtrosodimetliylanilin,  nitrotoluol.  nitrotoluylenediamin, 
phenol,  phenylenediamin.  [13]  pJicnylhydrazine,  phenylnaphthylamin, 
[13]  phenylylycocoU,  phenylylycocollorthocarboxylic  acid,  phthalic  acid, 
phthalic  anhydride,  [13]  pMJialimid,  resorcin  [8]  not  suitable  for  me- 
dicinal use,  salicylic  acid  [9]  and  its  salts  [8]  not  suitable  for  medicinal 
use,  sulplianilic  acid,  [14]  tliiocarbanilid,  [13]  tMosalicylic  acid,  tetra- 
chlorjjhtJialic  acid,  tetrametJiyldiaminobenzopJienone,  teiramethyldia- 
minodiphenylmethane,  toluol  sidphocJiloride,  toluol  sulpliamid,  tH- 
hromphenol,  toluidin,  tolidin,  toluylenediamin,  xylidin,  or  any  sul- 
phoacid  or  sulphoacid  salt  of  any  of  the  foregoing,  [15]  or  of  any  of 
the  products  prorided  for  in  Group  I:  [16]  all  similar  products  obtained 
derived,  or  manufactured  in  whole  or  in  part  from  the  prodiioto 
pfo^ded  for  in  Group  I,  all  other  products  by  v-hatever  name  Icnmun 
v:hich  are  employed  iri  the  manufacture  of  any  of  the  products  provided 
for  in  Group  II  or  III  and  which  are  obtained,  denved,  or  manufac- 
tured in  whole  or  in  part  from  any  of  the  foregoiny  or  from  any  of  the 
products  provided  for  in  Group  I;  anthracene  having  a  purity  of  [3] 
twenty  five  thirty  per  centum  or  more,  carbazol  having  a  puritj^  of 
[4]  twenty  five  sixty-five  per  centum  or  more,  metacresol  having  a 
purity  of  ninety  per  centum  or  more,  naphthalene  having  a  solidi- 
fying point  of  seventy-nine  degrees  centigrade  or  above,  orthocresol 
having  a  purity  of  ninety  per  centum  or  more,  paracresol  having  a 
purity  of  ninety  per  cent  am  or  more;  all  distillates  [17]  of  coal  tar, 
blast-furnace  tar,  oil-gas  tar,  and  water-gas  tar  which  on  being  sub- 
jected to  distillation  yield  in  the  portion  distilling  below  [17]  -twe- 
hundred  one  hundred  and  ninety  degrees  centigrade  a  quantity  of  tar 
acids  equal  to  or  more  than  five  per  centum  of  the  original  distihate; 
[18]  all  mixtures,  including  solutions,  consisting  in  whole  or  in  part  of 
any  of  the  foregoing  except  sheep  dip  and  medicinal  soaps,  not  other- 
wise specially  provided  for  in  this  act;  all  the  fore2:oing  not  colors, 
dyes,  or  stains,  [19]  color  acids,  color  bases,  color  lilies,  leuco-acids, 
leuco-bases,  indoxyl,  indoxyl  compounds,  inlc  pouxlers,  photographic 
chemicals,  medicinals,  flavors,  [19]  resinlihe  products,  synthetic  tan- 
ning materials,  or  explosives,  and  not  otherwise  specially  provided 

tum  ad  valorem. 

Group  III.  All  colors,  dyes,  or  stains,  whether  soluble  or  not  in 
water,  color  acids,  color  bases,  color  lakes,  [21]  leuco-acids  and  leuco- 
bases  whether  colorless  or  not,  indoxyl  and  indoxyl  compounds;  [22]  inh 


35 

pou'ders:  photographic  chemicals;  [23]  me4iemB:]8-  acetanilid  fmitalle 
for  m(d\cmal  vse,  acetyl  in  eiid',n,  acitylsalicylic  acid,  antijnjrine, 
'henzoldihydc  smtalle  for  m(dici7ial  use,  hcnzoic  acid  snitolle  for  m(dici- 
nal  me/litaraflth'cl  mitalle  for  m(dicinol  vse,  jihemdyldlcliim, 
resorcin  sniialJe  for  medicival  vse,  salicylic  acid  and  its  salts  svitalle 
for  midicival  vse,  saloL  avd  otlxr  med'civals;  [24]  scdivm  hcnzoate; 
[25]  faceliar'.v,  [26]  mdliyl  salicylate,  [27]  ccvmariv,  avd  other  flavors; 
synthetic  pi  enolic  resin'  [28]  aid  all  resinlil-e  jjroelvets  prepared  from 
phenol,  cresol,  phihalic  anhydride,  eovmaron,  indene,  or  from  any  other 
article  or  material  provided  for  in  Grovp  I  or  II,  all  of  these  products, 
whether  in  a  solid,  semisolid,,  or  liquid  condition;  [29]  synthetic  tanning 
materials;  [30]  or  cx^eaiyeer  [31]  not  otherwise  gpceially  provided 
for  in  thi8-4it-le  [30]  picric  acid,  trinitrotcluol,  and  other  explosives  except 
smol-eless  poivders;  [32]  all  of  tlie  foregoing  when  ohtained,  derived,  or 
manufactured  in  whole  or  in  part  from  any  of  the  products  provided 
for  in  [33]  Gfe«ps  Group  I  [33]  ftftd  or  II;  natural  alizarin  and  [34] 
natural  indigo,  and  colors,  dyes,  [34]  stains,  color  acids,  color  heises,  Of 
color  lakes,''  [34]  lev  co-acids",  levco-hases,  indoxyl,  and  indoxyl  com- 
pounds obtained,  derived,  or  manufactured  [34]  44^ercfrom  in  whole  or 
in  part  from  natural  alizarin  or  natural  indigo;  [26]  natural  methyl  sali- 
cylate or  oil  of  wintergreen  or  oil  of  sweet  hircJi;  [27]  natural  coumarin, 
[35]  and  all  mixtures,  including  solutions,  consisting  in  whole  or  in  part 
of  any  of  the  articles  or  materials  provided  for  in  tJtis  group,  thhty  per 
centum  ad  valorem. 

Sec.  501.  That  on  and  after  the  day  following  the  passage  of  this 
act,  in  addition  to  the  duties  provided  in  section  five  hundred,  there 
shall  be  levied,  collected,  and  paid  upon  all  articles  contained  in 
Group  II  a  special  duty  of  2^  cents  per  pound,  and  upon  all  articles 
contained  in  Group  III  [36]  (exoeft  natural  AND-8¥JrTHB¥i€-AfcKA- 

Riy  AND  DYEO  ODTAINED-FReM-AfeiZAiHJf7-A?rrHflA€EJyE-A?^B-€ABBA£efc7 
NATURAL  AND  OYNTIIETIC-^NDIQO  AND  ALfe-iJvBiee?Bfi-^H£¥HER-eit 
NOT  OBTAINED  FROM  INDIGO;  AND-MEBieiJ^AfcS-AJrB-f fcA^eSS)-  a  spe- 
cial duty  of  5  cents  per  pound:  [37]  Provided,  That  the  special  duties 
herein  provided  for  on.  colors,  dyes,  or  stains,  whether  scluLle  or  not  in 
water,  cclor  acids,  color  bases,  cclor  lal:es,  leuco-acids,  leuco-hases, 
indoxyl  and  indoxyl  compounds,  shall  he  based  on  standards  of  strength 
which  shall  be  established  by  the  Secretary  of  the  Treasury,  and  that 
upon  all  importations  of  such  articles  which  exceed  such  standards  of 
strength  the  special  duty  of  5  cents  per  pound  shall  be  computed  on  the 
weight  which  the  article  would  have  if  it  were  diluted  to  the  standard 
strength,  but  in  no  case  shall  any  such  articles  of  whatever  strength  pay 
a  special  duty  of  less  than  5  cents  per  pound:  Provided  further.  That, 
beginning  six  months  after  the  date  of  passage  of  this  act,  no  jyacliage 
containing  any  such  color,  dye,  stain,  color  acid,  color  base,  color  lalce, 
leuco-acid,  leuco-base,  indoxyl,  or  indoxyl  compound  shall  be  admitted 
to  entry  into  the  United  States  unless  such  pad-age  and  the  invoice  shall 
bear  a  plain,  conspicuous,  and  truly  descriptive  statement  of  the  identity 
and  percentage,  exclusive  of  diluents,  of  such  color,  dye,  stain,  cclor  acid, 
color  base,  color  lake,  leuco-acid,  leuco-base,  indoxyl,  or  indoxyl  com- 
pound contained  therein:  And  provided  further.  That,  beginning  six 
months  after  the  date  of  passage  of  this  act,  no  package  containing  any 
such  article  shall  be  admitted  to  entry  into  the  United  States  if  it,  or  the 
invoice,  bears  any  statement,  design,  or  device  regarding  such  article  or 
the  ingredierds  or  substances  contained  therein  which  is  false,  fraudu- 
lent, or  inisleading  in  any  particular.     In  the  enforcement  of  this  section 


36  ; 

the  Secretary  of  the  Treasury  shall  adopt  standards  of  strength  which 
shall  conform  as  nearly  as  practicable  to  the  commercial  strengths  in  use 
in  the  United  States  prior  to  July  first,  nineteen  hundred  and  fourteen. 
[38]  During  the  period  of  five  ^^cars  beginning  five  years  after  tho 
passage  of  this  act  Beginning  Septemher  ninth,  nineteen  hundred  and 
tvjenty-one,  such  special  duties  shall  be  annually  reduced  by  twenty 
per  centum  of  the  rate  imposed  by  this  section  [38]  so  that  at  tho 
end  of  such  period  until  Septemher  eighth,  nineteen  hundred  and 
twentyfive,  after  which  date  such  special  duties  shall  no  longer  be 
assessed,  levied,  or  collected,  [39]  but   if,  at  the  EjsfifiA¥i€jr-ep 

FIVE  YEAE3  FROM  THE  DATE-  OF  THE-f Afi6AeE-eF-^iHe-A€ Ty-lfi© 
fetBSIDENT  FINDS  THAT  THERE  IS  y6^—B£iJ^€—MAyt:'FA€^t  ?,££--€» 
ritODUCED  WITIIiy  THE  UnITED  States  ■•  as— M^^€H—Afi—fiiS^¥—FER 
CENTUM  IN  VALUE  OF  THE  DOMESTIC  CONSUMFTieN  OF  THE-AR¥i6EE6 
MENTIONED  IN  GeOUFS  II  AND-  III  OF  SECTieJv-Fi^'E.-Ht?vBBEB7-fiB 
SnALL  BY  TROCLAMATION  SO  DECLARE,  WHEBE^f  6?v— THE— gf  EeiAfc 
DUTIES  IMPOSED  BY  THIS  SECTION  ON  SUCH  ARTICLES  SHALL  NO 
BeJr&ER  BE  ASSESSED,   LEVIED,   OR  COLLECTED . 

[40]  The  Sea'etary  of  the  Treasury  is  hereby  authorized  to  malce 
regulations  for  the  enforcement  of  the  provisions  of  this  title. 

Sec.  502.  That  paragraphs  twenty,  twenty-one,  twenty-two, 
twenty- three,  [41]  one  hundred  and  seventy-nine,  three  hundred  and 
ninety-four,  four  hundred  and  fifty-two,  and  five  hundred  and 
fourteen,  and  tlie  [41]  words  '^salicylic  aeid''  in  paragraph  one  of 
Sehcdule  A  of  acetion-e-ne  provision  for  salicylic  acid  in  paragraph 
one;  and  provisions  for  salol,  phenol phthalein,  acetanilid,  acetphen- 
etidin,  aniipyrine,  acetylsalicylic  acid,  and  aspirin  in  paragraph 
eighteen;  and  the  provision  for  henzoate  of  soda  in  paragraph  sixty-seven; 
and  the  [41]  words- '^eafbolic '  '-and  ^^phthalic ' '  provisions  for  carbolic 
and  pdithalic  acids  in  paragraph  three  hundred  and  eighty-seven  [41] 
of  the  "free  list"  of  ocction-onc  of  said  act,  [43] and  so  muoh  of  said 
fte^-of-ftny  existing  law  or  parts  of  law  as  ma}^  be  inconsistent  with 
this  title  arc  hereby  repea4ed:  of  an  act  entitled  "An  act  to  reduce 
tariff  duties  and  to  provide  revenue  for  the  Government,  and  for 
other  purposes,"  approved  October  third,  nineteen  hundred  and 
thirteen,  are  hereby  repealed:  [42]  Provided,  That  all  articles  which 
may  come  within  the  terms  of  paragraphs  one,fi.ve,  thirty-seven,  forty-six, 
sixty-three,  five  hundred  arid  one,  and  five  hundred  and  thirty-eight  of 
said  act  of  October  third,  nineteen  hundred  and  thirteen,  as  well  as 
within  the  terms  of  Group  I,  II,  or  III  of  section  five  hundred  of  this 
act  shall  be  assessed  for  duty  or  exempted  from  duty,  as  the  case  may  be, 
under  this  act. 

Sec.  503.  [44]  That  on  and  after  the  day  when  this  act  shall  go  into 
efect  all  of  the  foregoing  goods,  wares,  and  merchandise  previously 
imported,  for  which  no  entry  has  been  made,  and  all  of  the  foregoing 
goods,  wares,  and  merchandise  previously  entered  without  payment  of 
duty  and  under  bond  for  warehousing,  transportation,  or  any  other 
purpose,  for  which  no  permit  of  delivery  to  the  importer  or  his  agent 
has  been  issued,  shall  be  subject  to  the  duties  imposed  by  this  act  and 
to  no  other  duty,  upon  the  entry  or  the  withdrawal  thereof:  Provided, 
That  when  duties  are  based  upon  the  weight  of  merchandise  deposited 
in  any  public  or  pnvate  bonded  loarehouse,  said  duties  shall  be  levied 
and  collected  upon  the  weight  of  such  merchandise  at  the  time  of  its  entry. 

Sec.  504.  [45]  Except  as  otherwise  herein  specially  provided,  this 
act  shall  talce  effect  on  the  day  following  its  passage. 


DETAILED  TECHNICAL  DISCUSSION  OF  REASONS 
FOR  THE  PROPOSED  AMENDMENTS 


(37) 


DETAILED  TECHNICAL  DISCUSSION  OF  REASONS  FOR  THE 
PROPOSED  AICENDMENTS. 

By  Dr.  Grinxki.l  Jonks,  Cliemical  Exiicrt  on  the  slaff  of  the  Tariff  Commission. 


The  general  intent  or  policy  of  Congress  is  clearly  revealed  in  the 
act  of  September  8.  1916.  The  materials  covered  by  the  law  are 
divided  into  three  groups:  Group  I.  Free  List,  includes  the  so-called 
crudes;  Group  II,  dutiable  at  15  per  cent  plus  2^  cents  per  pound,  in- 
cludes the  so-called  intermediates;  and  Group  III,  dutiable  at  30 
per  cent  plus  5  cents  per  pound  (or  at  30  per  cent  only  in  certain 
tases),  includes  the  finished  products.  This  policy  is  a  logical  one 
and  conforms  with  the  technical  or  manufacturing  relationship  of 
these  articles. 

Group  I  includes  the  chemical  substances  naturally  present  in  coal 
tar  and  the  commercial  mixtures  thereof  which  can  be  obtained  from 
tar  by  distillation  and  simple  chemical  processes. 

Coal  tar  itself  is  obtained  as  a  by-product  in  the  manufacture  of 
coke  and  coal  gas.  The  production  of  these  materials  has  been  so 
enormously  increased  in  recent  years  to  supply  the  demand  for  ex- 
plosives that  ample  and  cheap  domestic  raw  materials  will  be  avail- 
able for  all  the  other  branches  of  the  coal-tar  products  industry  when 
the  military  demand  disappears. 

An  exception  to  this  general  policy  is  found  in  phenol,  which  oc- 
curs naturally  in  coal  tar  but  in  insufficient  amounts  to  supply  the 
military  needs  for  the  manufacture  of  picric  acid  and  ammonium 
picrate.  As  a  consequence,  a  large  synthetic-phenol  industry  has 
arisen  since  the  outbreak  of  the  European  war.  There  are  strong 
military  arguments  for  the  encouragement  of  this  new  phenol  indus- 
try, and  Congress  clearly  expressed  the  intention  to  give  such  en- 
couragement by  placing  ]5henol  on  the  dutiable  list. 

Group  II,  dutiable  at  15  per  cent  plus  2^  cents  per  pound,  includes 
tlie  i^i'oducts  known  in  the  trade  as  intermediates.  They  are  made 
from  the  crudes  by  chemical  processes  and  (with  a  few  minor  excep- 
tions) are  not  useful  except  for  further  manufacture  by  chemical 
processes  into  the  finished  products  provided  for  in  Group  III. 
These  intermediates  are,  however,  articles  of  conmierce  and  may  be 
imported.  The  most  familiar  example  of  these  substances  is  anilin. 
The  finished  iU'ticIes  are  expressly  excluded  from  this  group. 

Group  III,  dutiable  at  30  per  cent  plus  5  cents  ))er  pound  or  duti- 
able at  30  per  cent  only,  includes  the  finished  products  derived  from 
coal  tar:  Dves,  photograjihic  chemicals,  medicinals.  flavors,  synthetic 
phenolic  resins,  and  explosives.  The  finished  products  are  closely 
related  to  each  other  in  a  technical  or  manufacturing  sense.  They 
use  the  same  raw  materials,  the  same  intermediates,  and  in  many 

(39) 


40 

cases  have  been  made  in  the  same  factory  using  the  same  or  similar 
equipment.  It  frequently  happens  that  by-products  obtained  in  mak- 
ing an  intermediate  intended  for  the  manufacture  of  a  dye  can  best 
be  utilized  in  making  a  product  of  some  other  class  such  as  a  medici- 
nal or  explosive.  The  close  relationship  between  the  dye  industry 
and  certain  branches  of  the  explosive  industry  was  evidently  in  the 
mind  of  Congress  in  framing  the  law.  Perfumes  and  perfume  mate- 
rials derived  from  coal  tar  are  not  included  presumably  because  Con- 
gress did  not  desire  to  change  the  treatment  of  these  articles  under  the 
act  of  1913.  Paragraph  49  levies  a  duty  of  20  per  cent  on  "  synthetic 
odoriferous  or  aromatic  substances,  preparations,  and  mixtures,  used 
in  the  manufacture  of,  but  not  marketable  as  perfumes  or  cosmetics." 
Paragraph  48  levies  a  duty  on  "  Perfumery,  *  *  *  jf  contain- 
ing alcohol,  40  cents  per  pound  and  60  per  centum  ad  valorem ;  if 
not  containing  alcohol,  60  per  centum  ad  valorem."  Many  of  the 
materials  used  in  the  compounding  of  perfumes  are  derived  from 
coal  tar.  They  are,  as  a  rule,  very  high  priced  materials,  owing  to 
the-  small  scale  on  which  they  are  made  and  the  extreme  degree  of 
purity  required.  The  present  duty  of  20  per  cent  is,  therefore, 
higher  than  the  duty  would  be  if  these  materials  were  classed  in 
Group  II  of  the  act  of  September  8,  1916.  The  present  duty  on 
perfumery  is  higher  than  if  perfumery  were  classed  in  Group  III. 

The  legislative  history  of  this  act  inclicates  that  it  was  the  purpose 
and  intent  of  Congress  to  encourage  the  creation  of  an  American 
coal-tar  products'  industry  which  should  give  an  assured  domestic 
supply  not  only  of  dyes  but  of  all  of  the  closely  related  products.  A 
careful  study  of  the  phraseology  and  practical  working  of  the  law 
has  revealed  many  ways  by  which  the  intent  of  Congress  can  be 
evaded  and  has  suggested  amendments  to  the  present  law  which  will 
give  legal  effect  more  completely  to  the  original  intent  of  Congress. 

The  numbers  at  the  beginning  of  each  section  refer  to  the  numbers 
in  the  edited  copy  of  the  bill  immediately  preceding  this  discussion. 

The  changes  proposed  with  the  reasons  therefor  are  as  follows : 

GROUP  I — FREE. 

1.  Add  to  Group  I,  "  Pitch  of  blast-furnace  tar,  pitch  of  oil-gas 
tar,  pit(  h  of  water-gas  tar "  *  *  *  "  crude  blast-furnace  tar, 
crude  oil-gas  tar,  crude  water-gas  tar."  Although  coal  tar  is  by  far 
the  most  important  source  of  the  products  covered  by  this  act,  there 
occur  in  commerce  other  similar  tars  known  as  blast-furnace  tar,  oil- 
gas  tar,  and  water-gas  tar.  These  tars,  although  similar  to  coal  tar 
in  chemical  nature,  and  yielding  similar  products  on  distillation,  are 
not  identical;  they  differ  chiefly  in  the  relative  proportions  of  their 
constituents.  It  would  be  difficult  if  not  impossible  for  the  appraisers 
to  distinguish  between  the  similar  distillates  made  from  these  differ- 
ent tars.  This  close  similarity  makes  it  advisable  to  put  all  of  the 
tars  on  the  same  basis. 

2.  Add  to  Group  I,  "  all  mixtures  of  any  of  these  distillates  and 
any  of  the  foregoing  pitches." 

It  is  a  common  practice  to  distill  tar,  yielding  various  distillates 
and  a  pitch.  These  distillates  may  then  be  chemically  treated  to  re- 
cover valuable  constituents,  such  as  phenol  or  anthracene  and  the 


41 

less  valuable  residue  may  be  mixed  with  the  pitch  for  the  purpose 
of  softening  it.  In  order  to  insure  such  products  being  retained  on 
the  free  list  instead  of  being  classified  under  paragraph  5  of  the  act 
of  1913,  the  amendment  quoted  above  is  proposed. 

3.  Change  the  clause  Avhich  reads  '"  anthracene  having  a  purity  of 
less  than  twenty-five  per  centum  "  so  that  it  reads  "  anthracene  hav- 
ing a  purity  of  less  than  thirty  per  centum." 

The  present  law  places  *'  anthracene  having  a  purity  of  less  than 
twenty-five  per  centum  "  on  the  free  list  and  "  anthracene  having  a 
purity  of  twenty-five  per  centum  or  more  "  on  the  dutiable  list. 

The  evident  intention  was  to  place  crude  anthracene  on  the  free 
list,  but  to  encourage  the  refining  of  anthracene  in  the  United  States 
by  placing  a  duty  on  the  refined  article.  Anthracene  is  the  basic  raw 
material  for  the  manufacture  of  alizarin  and  an  important  series  of 
fast  vat  dyes  for  cotton.  It  is  one  of  the  substances  present  in  coal 
tar,  but  it  was  not  recovered  commercially  in  the  United  States  until 
1917,  except  on  a  small  scale  in  1873  and  1874.  At  the  time  the 
present  law  was  passed  there  was  no  experience  with  recovery  of 
anthracene  and  therefore  the  proper  specification  to  distinguish  be- 
tween the  crude  and  refined  grades  was  entirely  a  matter  of  guess- 
work. Sufficient  experience  has,  however,  now  been  gained  to  show 
that  the  specification  in  the  law  should  be  changed. 

Anthracene  appears  in  commerce  in  three  grades.  Anthracene  is 
recovered  from  a  high  boiling  fraction  obtained  in  the  distillation  of 
coal  tar.  When  this  distillate  is  allowed  to  cool  to  atmospheric  tem- 
peratures, it  separates  into  a  solid  and  a  liquid  portion  which  are 
separated  by  suitable  mechanical  means.  The  solid  portion  is  called 
"  crude  anthracene  "  and  usually  contains  from  25  to  30  per  cent  of 
anthracene,  15  to  20  per  cent  of  carbazol,  about  20  per  cent  of  phe- 
nanthrene.  and  the  remainder  chiefly  liquid  hydrocarbons  of  no  com- 
mercial value.  This  crude  anthracene  may  be  made  at  any  tar-dis- 
tilling plant.  The  refining  of  anthracene,  which  is  necessary  to  make 
it  useful  for  dye  making,  requires  subsequent  chemical  treatment. 
The  next  step  in  the  refining  is  to  treat  the  crude  anthracene  with 
an  oil  which  acts  as  a  solvent  for  the  phenanthrene.  This  treatment 
yields  a  purer  grade  of  anthracene  containing  from  35  to  50  per  cent 
of  anthracene  and  20  to  35  per  cent  of  carbazol.  Before  the  out- 
break of  the  European  war  a  grade  of  anthracene  guaranteed  to  con- 
tain at  least  40  per  cent  was  made  in  England  and  shipped  to  Ger- 
many. 

This  second  grade  of  anthracene  is  then  treated  with  another 
solvent  which  removes  the  bulk  of  the  carbazol  and  yields  a  product 
containing  80  to  85  per  cent  of  anthracene.  Sublimation  is  some- 
times resorted  to  for  the  purpose  of  improving  the  quality.  This 
grade  is  pure  enough  to  be  used  for  the  manufacture  of  intermedi- 
ates. It  is  obvious  that  the  specifications  of  25  per  cent  to  distinguish 
between  the  crude  and  refined  grades  is  too  low. 

Raising  the  specification  to  30  per  cent  will  make  it  in  better  accord 
with  the  commercial  practice,  leaving  the  crude  anthracene  on  the 
free  list  and  making  the  refined  article  dutiable. 

4.  Change  the  clause  wliich  reads  "  carbazol  having  a  purity  of  less 
than  twenty-five  per  centum"  so  that  it  reads  "carbazol  having  a 
purity  of  less  than  sixty-five  per  centum." 


42 

The  case  of  carbazol  is  similar  to  that  of  anthracene  discussed 
above.  Here  again  Congress  evidently  intended  to  place  crude  car- 
bazol on  the  free  list  and  the  refined  article  is  Group  II ;  the  speci- 
fication to  distinguish  between  the  two  grades  was  placed  at  25 
per  cent.  The  crudest  carbazol  which  appears  in  commerce  is,  how- 
ever the  product  obtained  by  removal  of  carbazol  from  the  second 
grade  of  anthracene  as  described  above.  The  crude  carbazol  has  a 
purity  of  from  50  to  60  per  cent.  By  a  suitable  chemical  process  it 
is  converted  into  a  grade  having  a  purity  of  75  to  80  per  cent  and 
by  a  second  process  to  a  grade  having  a  purity  of  over  95  per  cent. 

Raising  the  specification  to  distinguish  between  crude  and  refined 
carbazol  to  65  per  cent  will  leave  the  crude  carbazol  on  the  free  list 
and  make  the  refined  article  dutiable. 

5.  Omit  "  cresol  "  from  the  list  of  substances  mentioned  by  name  m 
Group  I.  The  effect  of  this  omission  w^ould  be  to  classify  imports  of 
this  article  under  the  "  all  distillate  "  clause  of  the  law. 

Change  the  temperature  of  distillation  from  200°  C.  to  190°  C., 
and  include  distillates  from  blast-furnace  tar,  oil-gas  tar,  and  water- 
gas  tar,  so  that  the  clause  in  Group  I  reads : 

all  other  distillates  of  any  of  these  tars  which  on  being  subjected  to  distillation 
yield  in  the  portion  distilling  below  one  hundred  and  ninety  degrees  centigrade 
a  quantity  of  tar  acids  less  than  live  per  centum  of  the  original  distillate. 

The  original  interpretation  of  these  clauses  by  the  customs  officers 
has  been  changed  by  a  decision  of  the  General  Appraisers  dated 
August  9,  1918,  which  is  hereinafter  discussed.  The  amendments 
proposed  in  the  accompanying  bill  will  put  an  interpretation  in 
effect  which  is  intermediate  between  the  original  practice  and  the 
practice  under  the  recent  decision  of  the  General  Appraisers.  It  is 
believed  that  this  intermediate  interpretation  is  in  better  accord  with 
the  original  intent  of  Congress. 

The  Tariff  Commission  has  received  statements  from  several  im- 
porters objecting  to  the  treatment  of  cresol  or  cresylic  acid  under  the 
law  of  1916  as  interpreted  by  the  customs  officers  prior  to  the  General 
Appraisers'  decision  of  August  9,  1918. 

The  essential  point  of  these  complaints  is  that  although  cresol  is 
specifically  placed  on  the  free  list  the  word  has  been  defined  by  the 
customs  officers  in  such  a  way  that  some  shipments  of  commercial 
cresol  have  been  assessed  a  duty  of  15  per  cent  plus  2^  cents  per 
pound,  under  the  clause  in  Group  II : 

all  distillates  which  on  being  subjected  to  distillation  yield,  in  the  portion  dis- 
tilling below  two  hundred  degrees  centigrade  a  quantity  of  tar  acids  equal  to 
or  more  than  five  per  centum  of  the  original  distillate. 

Other  shipments  of  very  similar  material,  of  the  same  origin  and 
use  and  not  regarded  as  distinct  articles  commercially,  were  being 
admitted  free  as  cresol.  The  complainants  stated  that  they  were 
unable  to  predict  in  advance  whether  any  given  shipment  would  be 
held  by  the  collectors  to  be  free  or  dutiable. 

The  fundamental  source  of  the  difficulty  is  in  the  fact  that  the 
laAv  makes  a  distinction  between  phenol  and  cresol  by  placing  phenol 
on  the  dutiable  list  and  cresol  on  the  free  list.  Phenol  and  cresol 
are  very  similar  products  in  their  chemical  nature.  Both  occur 
naturally  in  coal  tar  and  are  commercially  obtained  from'  it.  They 
have  many  similar  uses,  especially  as  disinfectants  and  as  raw  mate- 


43 

rials  for  the  manufacture  of  synthetic  resins.  Phenol  is  the  raw 
material  from  which  the  important  military  explosive  picric  acid 
is  manufactured,  -svliereas  cresol  is  not  used  on  a  large  scale  for  mak- 
ing military  explosives.  The  supplies  of  phenol  from  coal  tar,  which 
were  ample  to  meet  all  the  demands  in  times  of  peace,  are  very 
far  from  being  adequate  to  the  present  military  demand.  As  a  con- 
sequence a  new  synthetic-phenol  industry,  which  did  not  exist  at  all 
before  the  war.  has  since  been  created  on  a  large  scale  in  the  United 
States.  (The  phenol  is  made  by  a  complex  chemical  process  from 
benzol.)  There  has  been  no  development  of  a  synthetic-cresol  in- 
dustry and  the  cresol  from  tar  now  supplies  the  total  demand  just 
us  it  did  before  the  Avar.  Both  phenol  and  cresol  are  acids  and  (to- 
gether with  higher  boiling  products  which  are  not  significant  for 
the  present  discussion)  are  known  collectively  as  "tar  acids." 

It  was  evidently  the  purpose  of  Congress  to  protect  tlie  new 
SATithetic-phenol  industry  while  permitting  cresol  derived  from  coal 
tar  to  come  in  free.  In  order  to  prevent  the  evasion  of  such  intent 
by  the  importation  of  crude  products  from  which  phenol  might  be 
recovered  commercially,  the  following  clause  was  added  to  the  duti- 
able list,  Group  II : 

all  other  distillates  whit-h  on  being  subjected  to  distillation  yield  in  the  portion 
fli.>^tillijis'  below  two  htindred  degrees  centigrade  a  quantity  of  tar  acids  equal 
to  or  more  than  five  per  centum  of  the  original  distillate. 

Immediately  after  the  passage  of  the  act  it  became  necessary  for 
the  customs  officers  to  define  the  term  "  cresol,"  which  is  on  the  free 
list. 

In  scientific  chemical  nomenclature  the  name  "  cresol "  is  a  group 
name  including  three  chemical  individuals  known  as  orthocresol, 
metacresol.  and  paracresol,  which  are  different  chemically  but  very 
similar  in  most  physical  properties.  In  commerce  the  word  '*  cresol  " 
is  used  as  synonj^mous  with  cresylic  acid  and  crude  liquid  carbolic 
acid,  which  are  crude  products  derived  from  coal  tar,  consisting 
chiefly  of  the  three  cresols  together  with  xylenols,  naphthalene,  and 
other  hydrocarbons,  and  from  which  the  phenol  (crystal  carbolic 
acid)  has  been  separated  as  far  as  is  commercialh"  feasible.  The 
definition  of  cresol  adopted  by  the  collector  of  customs  at  Xew  York 
is  a  distillate  derived  from  coal  tar  containing  less  than  5  per  ce]\t 
of  phenol  and  at  least  50  per  cent  of  the  three  isomeric  cresols. 

In  case  a  shipment  was  found  on  analysis  to  contain  5  per  cent  or 
more  of  phenol  it  was  not  classified  as  "  cresol,"  but  was  classified  as 
a  "distillate"  in  Group  I  (free)  or  Group  II  (dutiable).  With 
rare  exceptions  such  a  distillate  would  be  dutiable,  since  if  it  con- 
tained more  than  5  per  cent  of  phenol  it  would  also  have  more  than 
.")  per  cent  of  tar  acids  in  the  portion  distilling  below  200°  C.  An- 
other difficulty  is  that  no  simple  and  accurate  method  for  the  analyti- 
cal determination  of  phenol  in  commercial  cresol  is  known.  The 
method  used  by  the  customs  officials,  although  the  best  method  which 
has  yet  been  devised  by  chemists,  is  quite  complic-ated  and  less  accu- 
rate than  most  chemical  analyses.  The  importers  claimed  that  they 
were  often  unable  to  predict  in  advance  whether  any  given  shipment 
would  be  held  dutiable  or  free. 

It  soon  developed  that  many  shipments  of  material  commercially 
known  as  cresol  or  cresylic  acid  oi-  crude  liquid  carbolic  acid  con- 


44 

tained  5  per  cent  or  more  of  phenol,  and  therefore  could  not  be 
classified  as  cresol  under  this  definition. 

An  examination  of  Commerce  and  Navigation  reports  shows  that 
the  dutiable  shipments  in  question  are  being  entered  in  the  import 
tables  under  the  designation  "  liquid  carbolic  acid,"  a  name  some- 
times used  synonymously  in  the  trade  for  cresol  or  cresylic  acid. 

Imports  entered  for  consumption. 


Date. 


Sept.  8  to  Sept.  30,  1916. 
Oct.  1  to  Dec.  31,  1916.. 
Jan.  1  to  Mar.  31,  1917.. 
Apr.  1  to  June  30,  1917.. 

Total  (fiscal  year) 

July  1  to  Sept.  30,  1917.. 
Oct.  1  to  Dec.  31,  1917... 
Jan.  1  to  Mar.  31,  1918... 
Apr.  1  to  June  30,  1918.. 

Total  (fiscal  year) 


Cresol  (free). 


Pounds.         Value 


3,945 

360, 835 

2, 352, 718 

2,073,201 


Liquid  carbolic  acid  (dutiable). 


Pounds.         Value. 


$353 
21,872 
154,488 
153,025 


20,816 
154,612 
82,406 
16,550 


329, 738 


274,384 


1,709,775 
1,529,748 
2,158,877 
1,933,207 


112,212 
112,804 
168, 135 
153. 149 


71,400 
144,229 


131,958 


7,331,607 


546,300 


347,587 


SI, 466 

12,412 

6,633 

1,868 


22,379 


7,368 
8,377 


14,340 


30,085 


Duty. 


$740. 30 

5,727.10 

3,055.10 

693. 95 


10, 216. 45. 


2,890.20^ 
4,862.28 


5,449.9& 


13,202.43- 


The  import  statistics  show  that  in  the  first  few  months  after  the 
passage  of  the  act  a  considerable  fraction  of  the  total  was  held  to  be 
dutiable,  i.  e.,  it  contained  5  per  cent  or  more  of  phenol,  whereas  the 
later  months  show  that  foreign  shippers  and  domestic  importers  have 
been  able  to  adjust  their  methods  of  manufacture  and  specifications 
so  that  less  than  5  per  cent  of  the  material  has  been  held  to  be  duti- 
able. 

The  records  of  the  appraisers'  laboratory  at  the  port  of  New  York 
show  that  of  92  specimens  examined  up  to  November  2,  1917,  34  con- 
tained less  than  5  per  cent  of  phenol  and  were,  therefore,  classified 
as  cresol  against  58  specimens  containing  5  per  cent  or  more  of  phenol 
which  were,  therefore,  classified  as  a  dutiable  distillate  (liquid  car- 
bolic acid). 

It  is  evident  that  this  definition  of  cresol  did  not  accord  with  com- 
mercial practice  and  created  an  undesirable  situation. 

On  August  9,  1918,  this  definition  of  cresol  was  overthrown  by  the 
Board  of  General  Appraisers,  which  decided  that  the  terms  cresol, 
cresylic  acid,  and  liquid  carbolic  acid  are  synonymous,  and  that  a 
sample  containing  as  much  as  12.6  per  cent  of  phenol  should  be  clas- 
sified as  "  cresol  "  rather  than  as  "  all  other  distillates  which  on  being 
subjected  to  distillation  yield  in  the  portion  distilling  below  two  hun- 
dred degrees  centigrade  a  quantity  of  tar  acids  less  than  5  per  centum 
of  the  original  distillate." 

This  particular  case  has  not  been  appealed  by  the  Government,  but 
it  is  possible  that  a  new  case  will  be  made  in  order  to  bring  this  issue 
before  the  Court  of  Customs  Appeals  on  a  better  record.  This  deci- 
sion, if  allowed  to  stand,  appears  to  remove  the  reasonable  objections 
of  the  importers.  There  is  now  no  authoritative  decision  of  the  maxi- 
mum amount  of  phenol  which  may  be  present  in  cresol  without  pre- 
venting free  entry  as  "cresol."    Normally  phenol  is  removed  from 


45 

cresol  as  completely  as  it  is  coniniercially  feasible  to  do  so,  because 
the  phenol  is  higher  priced  than  cresol.  If,  however,  phenol  is  duti- 
able, but  cresol  containins:  large  amounts  of  phenol  may  be  imported 
as  "  cresol,"  it  may  prove  profitable  to  import  such  "  cresol "  and 
make  the  separation  in  the  Ignited  States  instead  of  abroad.  This 
may  make  it  possible  lo  evade  the  clearly  manifested  intention  of 
Conirress  to  protect  the  new  synthetic  phenol  industry. 

The  remedy  for  this  difKculity  which  is  proposed  in  the  accompany- 
ino-  bill  is  to" eliminate  the  term  "cresol"  entirely  from  the  law  and 
also  lower  the  temperature  specified  m  the  "all  other  distillates" 
clauses  from  200°  C.  to  190°  C. 

The  boilinir  point  of  phenol  is  183°  C,  the  boiling  point  of  ortho- 
cresol  is  191^'  C..  of  metacresol.  20-2°  C  and  of  paracre^ol,  202°  C. 

It  is  evident  that  considerable  orthocresol  will  distill  at  a  tempera- 
ture of  200°  C,  and.  therefore,  the  temperature  specified  in  the  law  is 
too  hiah  to  give  eitect  to  the  evident  purpose  of  the  law.  The  records 
of  the'lippraisers'  laboratory  at  New  York  show  that  of  58  specimens 
declared  dutiable  under  the  interpretation  of  the  law.  orginally 
adopted  by  the  customs  officers,  but  since  overruled  by  the  General 
Appraiser's,  only  5  would  have  been  declared  dutiable  under  the  pro- 
posed wordinir.'and  all  of  these  5  specimens  contained  12  per  cent  or 
more  of  phenol— an  abnormally  large  amount.  It  would  probably  be 
commercially  profitalile  to  recover  phenol  from  a  cresol  containing  12 
per  cent  or  more  of  phenol. 

The  proposed  new  wording  will  (1)  permit  the  free  importation  of 
all  specimens  of  commerciafcresy  lie  acid,  except  specimens  contain- 
ing abnormally  large  amounts  of  phenol,  which  it  would  be  profitable 
to'^remove:  (2)  make  the  decision  as  to  whether  any  given  shipment 
is  free  or  dutiable  dependent  on  a  much  simpler  chemical  analysis, 
and  thus  render  it  easily  possible  for  an  importer  to  know  definitely 
in  advance  whether  a  shipment  is  dutiable  or  free,  as  well  as  reduce 
the  work  thrown  on  the  appraisers'  laboratory:  (3)  prevent  any 
product  from  which  phenol  may  be  commercially  recovered  from  be- 
ms  admitted  duty  free.  The  proposed  new  wording  will  thus  give 
effect  to  the  evident  intent  of  Congress  in  framing  the  act  and  at  the 
same  time  eliminate  unnecessary  difficulties  and  friction  in  the  en- 
forcement of  the  act. 

6.  Omit  from  the  free  list:  "metacresol  having  a  purity  of  less 
than  ninety  per  centum."  "  orthocresol  having  a  purity  of  less  than 
ninety  per  centum,"  and  "  paracresol  having  a  purity  of  less  than 
ninety  per  centum." 

There  is  a  possibility  that  under  these  clauses  the  intent  of  Con- 
gress to  protect  the  American  phenol  industry  could  be  evaded.  A 
shipment  consisting  of  GO  per  cent  orthocresol  and  40  per  cent  phenol 
might  be  classified  as  "  orthocresol  having  a  purity  of  less  than  90 
per  cent,"  and  the  phenol  readily  recovered  after  it  had  passed  the 
customhouse.  The  purified  grades  of  cresol  are  retained  in  Group 
II.  The  effect  of  this  change  is  that  the  purified  grades  will  be  dutia- 
ble under  Group  II  in  accordance  with  the  presumable  intent  of  Con- 
gress to  encourage  the  refining  and  purification  of  these  articles 
within  the  Ignited  States,  whereas,  a  sample  not  conforming  to  the 
standards  of  purity  specified  would  be  classified  as  a  "  distillate  "  in 
Group  I  or  II  according  to  its  phenol  content. 


46  . 

7.  Add  "  cymene  "  to  Group  I  after  "  cumol." 

The  sulphite  process  of  making  wood  pulp  from  spruce  wood  yields 
a  by-product  of  an  oil  which  consists  essentially  of  a  substance  known 
as  cymene.  Cymene  is  closely  allied  in  its  chemical  structure  and 
behavior  to  benzol,  toluol,  xylol,  and  cumol,  which  are  obtained  from 
coal  tar.  A  whole  series  of  intermediates  and  dyes,  entirely  analogous 
to  the  products  obtained  from  these  coal-tar  crudes,  can  be  made  trom 
cymene.  For  example,  cymidin  is  made  from  cymene  exactly  as 
anilin  is  made  from  benzol,  and  jdelds  a  whole  series  of  dyes  closely 
resembling  the  dyes  derived  from  anilin.  They  resemble  anilin  dyes 
in  fastness  and  applicability  and  in  all  dyeing  properties,  except  that 
they  have  a  different  shade,  being,  as  a  rule,  redder  than  the  corre- 
sponding anilin  dyes. 

If  these  dyes  are  developed  commercially  they  will  necessarily  be  an 
integral  part  of  the  dye  industry,  both  from  a  manufacturing  and  sell- 
ing point  of  view,  and  they  will  compete  directly  with  the  anilin  dyes. 

There  is  some  scientific  evidence  that  cymene  is  contained  in  coal 
tar,  but  the  evidence  is  not  conclusive.  In  view  of  the  fact  that 
many  closely  related  substances  are  known  to  be  present  in  coal  tar, 
there  is  a  strong  probability  that  this  evidence  could  be  corroborated 
and  extended  if  a  careful  effort  were  made  to  find  cymene  in  coal  tar. 
It  is,  however,  certain  that  if  these  cymene  dyes  are  developed  com- 
mercially the  necessary  raw  material  will  be  obtained  from  the  wood- 
pulp  mills  of  North  America,  Norway,  and  Sweden,  rather  than 
produced  from  coal  tar. 

Are  these  dyes  covered  by  the  present  tariff  law?  Many  of  them 
undoubtedly  are,  because  they  are  made  by  combining  or  "  coupling  " 
a  cymene  intermediate  with  an  intermediate  of  undoubted  coal-tar 
origin,  such  as  naphthol  or  H  acid.  But  dyes  can  be  made  by  using 
intermediates  derived  exclusively  from  cymene.  Are  these  dyes 
covered  ? 

The  present  law  does  not  mention  cymene  or  any  of  its  derivatives 
by  name,  but  contains  in  Group  I  the  provision  "  all  other  products 
that  are  found  naturally  in  coal  tar,  whether  produced  or  obtained 
from  coal  tar  or  other  source."  If  cymene  is  covered  by  this  phrase, 
the  intermediates  and  dyes  made  from  it  are  dutiable  under  Group  II 
and  Group  III. 

The  customs  officers  would  probably  classify  cymene  dyes  under 
Group  III;  and  if  the  importers  brought  suit  to  secure  a  different 
classification,  the  issue  would  be  whether  or  not  cymene  is  "  found 
naturally  in  coal  tar,  whether  obtained  from  coal  tar  or  other  source." 
The  decision  would  probably  be  that  cymene  dyes  are  covered  by  the 
present  law,  but  all  uncertainty  can  be  easily  and  logically  removed 
by  adding  the  word  "  cymene  *'  after  "  cumol,"  in  Group  I. 

Group  II. — Dutiable  at  16  per  centum/ plus  2^  cents  per  pound. 

8.  Add  the  restrictive  phrase  "  not  suitable  for  medicinal  use " 
after  benzaldehyde,  benzoic  acid,  resorcin,  and  salicylic  acid.  These 
articles  all  appear  in  commerce  in  two  grades — a  pure  grade,  which 
conforms  to  the  specifications  of  the  United  States  Pharmacopoeia 
and  is  suitable  for  medicinal  use,  and  a  less  pure  grade,  which  is 
used  as  an  intormcMliate  for  making  dyes  and  other  finished  products. 


47 

The  pure  grades  are  mentioned  by  names  under  Group  III  with  the 
restrictive  clause  "suitable  for  medicinal  use."  This  amendment 
involves  no  change  in  the  present  practice,  but  is  believed  to  clarify 
the  present  language,  and  therefore  to  facilitate  the  enforcement  of 
the  law.  Phenol  is  also  used  as  a  medicinal  and  as  an  intermediate 
for  the  manufacture  of  dyes,  drugs,  and  explosives  (picric  acid).  In 
this  case,  however,  the  phenol  commonly  used  as  an  intermediate  is 
of  a  quality  suitable  for  medicinal  use:  and  since  far  more  is  used  as 
an  intermediate  than  directly  as  a  medicinal,  it  seems  that  to  leave 
it  in  Group  II  conforms  best  with  the  original  intent  of  Congress. 

9.  Add  "  and  its  salts  "  after  salicylic  acid  so  that  it  reads  "sali- 
cylic acid  and  its  salts  not  suitable  for  medicinal  use." 

'  Salts  of  salicylic  acid  can  be  used  for  the  same  purposes  as  the 
acid  itself  and  appear  in  commerce  in  a  medicinal  and  technical  grade. 

10.  Add  "  acetanilid  not  suitable  for  medicinal  use."  Acetanilid, 
like  the  articles  mentioned  under  No.  8,  appears  in  commerce  in  two 
grades — medicinal  and  technical  (used  as  an  intermediate  for  making 
dyes).  This  case  differs  from  the  above,  as  acetanilid  is  mentioned 
by  name  in  paragraph  18  of  the  act  of  1913,  which  imposes  a  duty  of 
25  per  cent  on  acetanilid  without  making  any  distinction  between  the 
two  grades. 

The  grade  suitable  for  use  as  an  intermediate  should  logically  be 
placed  in  Group  II  and  the  pure  grade  in  Group  III.  (See  No.  23 
below.) 

11.  Omit  "naphthol"  and  add  "  alphanaphthol"  and  "betanaph- 
thol  not  suitable  for  medicinal  use." 

The  present  law  provides  for  "naphthol"  with  the  qualification 
"  all  of  the  foregoing  not  *  *  *  medicinals  *  *  *."  (Com- 
pare also  with  No.  23.)  Naphthol  is  really  a  group  name  including 
two  distinct  but  similar  substances  known  as  alphanaphthol  and 
betanaphthol.  Betanaphthol  occurs  in  commerce  in  two  grades 
differing  in  quality  or  purity.  The  pure  grade  is  used  for  medicinal 
purposes  and  should  be  dutiable  in  Group  III  as  a  medicinal.  The 
impure  grade  is  used  for  the  manufacture  of  dyes  and  medicinals 
and  should  be  dutiable  under  Group  II. 

Alphanaphthol  is  never  used  as  a  medicinal  and  therefore  belongs 
in  Group  II. 

12.  Change  the  spelling  of  "  binitrobenzol,"  "  binitrochlorobenzol," 
"  binitronaphthalene,"  "  binitrotoluol,"  "diphenylaimin  "  and  "  anilin 
salts  "  to  read  "  dinitrobenzol,"  "  dinitrochlorbenzol."  "  dinitronaph- 
thalene."  "  dinitrotoluol,"  "  diphenylaniin."  "  anilin  salt."  It  is  com- 
mercial practice  to  use  the  prefix  "  di  "  instead  of  "  bi."  The  spelling 
"  diphenylaimin  "  is  wrong;  it  should  be  "  diphenylaniin." 

The  term  "  anilin  salts  "  was  probably  inadvertently  used  instead 
of  '•  anilin  salt."  The  latter  term  is  commonly  used  in  commerce  in 
a  definite  sense  meaning  the  hydrochloride  of  anilin  which  is  much 
used  by  calico  printers.  The  term  "anilin  salts"  may  be  too  broad 
and  be  held  to  include  articles  properly  classified  elsewhere. 

13.  xVdd  the  following  substances  to  the  list  mentioned  by  name: 

Ainidobenznif  arid,  aniiilophonetnl.  niniiioaiitliraquindno,  arsanilic  afid,  bon- 
zalchlorido.  benzanthrone.  lienzidin  sulphate,  hi-nzoquinone,  beiizoylchloride, 
hroinbenzoL  chlorlienzo].  oiiiuaiiiio  acid,  dehydrotbiotnluidin.  dianiinostilbeue, 
dic'lilorplitlialic  acid,  dimolbylaniidophenol,  diiuelbylpben.vlenediamin,  dinitro- 
lihouiil.  t^tliyllii'ii/.ylaniliii.  liydroxypheiiylarsinic  acid,  nitroaiithranuinoiie.  nitfo- 


48 

benzaldehvde,  nitrophenol,  nitrosodimethylanilin,  phenylhydraziue,  phenylgly- 
cocoll,  phenylglycocollorthocarboxylic  acid,  phthalimid,  thiosalicylfc  acid,  tetra- 
chlorphtlialic  acid,  tetramethyldiaminobeuzoplieuone,  tertrametliyldiaminodi- 
phenylmetliaue,  toluol  sulpliochioride,  toluol  sulphamid,  tribromphenol. 

The  addition  of  these  substances  to  the  list  in  the  present  law  makes 
no  change  in  the  rates  of  duty,  since  they  are  presumably  all  covered 
in  the  basket  clause  of  the  present  law  which  reads : 

all  similar  products  obtained,  derived,  or  manufactured  in  wbole  or  in  part 
from  tbe  products  provided  for  in  Group  I. 

The  primary  purpose  of  mentioning  substances  by  name  is  to  in- 
sure that  detailed  import  statistics  will  be  available.  American  manu- 
facturers agree  that  detailed  knowledge  of  the  activities  of  foreign 
competitors  in  the  American  market  will  be  helpful  to  the  American 
industry.  The  present  law  does  not  provide  adequately  for  interme- 
diates used  in  making  drugs  and  the  most  important  of  these  have, 
therefore,  been  added. 

14.  Add  '•  thidcarbanilid."  This  article,  which  is  presumably  cov- 
ered by  the  present  laAv.  deserves  special  mention,  because  it  may 
involve  a  new  principle.  Within  the  last  few  years  it  has  been  found 
that  the  addition  of  various  coal-tar  products  to  rubber  will  accelerate 
the  process  of  vulcanization.  Experimentation  in  this  field  is  very 
active,  and  it  would  be  premature  to  predict  which  substances  will 
ultimately  be  found  most  useful.  The  four  substances  which  have 
been  most  used  are  anilin.  phenylenediamin.  nitrosodimethvlanilin, 
and  thiocarbanilid — the  last  menticned  is  the  most  used  and  is  prob- 
ablv  the  best.  The  first  three  are  important  intennediatas  for  dyes. 
Thiocarbanilid  appears  not  to  have  been  used  for  this  purpose, 
although  it  is  possible  that  such  a  use  will  develop  if  it  becomes  com- 
mercially available  as  a  result  of  a  demand  from  the  rubber  industry. 
From  the  point  of  view  of  the  manufacture  of  coal-tar  products  it 
miffht  be  regarded  as  a  finished  product  and,  therefore,  logically 
classified  in  Group  III  as  a  member  of  a  new  class  of  finished  prod- 
ucts^— accelerators  for  the  vulcanization  of  rubber.  It  is  bought  and 
consumed  by  the  rubber  industry  just  as  dyes  are  bought  and  con- 
sumed by  the  textile  industry.  It  is.  however,  no  more  difficult  to 
make  than  many  of  the  other  articles  in  Group  II,  being  made  from 
anilin  and  carbon  bisulphide.  Since  its  chief  rival  commodities  are 
in  Group  II  and  uses  for  the  commodity  as  an  intermediate  are  likely 
to  develop,  it  is  placed  in  Group  11. 

15.  After  "  sulphoacid  salt  of  any  of  the  foregoing"  add  "or  of 
any  of  the  products  provided  for  in  Group  I.''  Sulphoacid  deriva- 
tives of  benzol,  toluol,  and  naphthalene  are  important  intermediates 
and  should  be  provided  for. 

16.  Change  the  clause  "  all  similar  products  obtained,  derived,  or 
manufactured  in  whole  or  in  part  from  the  products  provided  for  in 
Group  I "  to  read : 

all  other  products  by  whatever  name  known  which  are  employed  in  the  manu- 
facture of  any  of  the  products  provided  for  in  Group  II  or  III  and  which  are 
obtained,  derived,  or  manufactured  in  whole  or  in  part  from  any  of  the  fore- 
going or  from  any  of  the  products  provided  for  in  Group  I. 

The  term  "  similar "  is  ambiguous,  since  the  necessary  degree  of 
similarity  is  not  made  clear.  The  proposed  new  wording  obviates 
this  difficulty.    Attention  is  called  to  the  fact  that  this  clause  is  fur- 


49 

ther  qualified  by  the  clause  near  the  end  of  Group  II.  which  in  the 
proposed  revision  reads  (see  No.  19)  : 

all  of  the  foro.uoinc:  not  colors,  dyes,  or  stains,  color  acids,  color  bases,  color  lakes, 
leuco-acids,  leuco-bases,  indoxyl,  indoxyl  compounds,  ink  powders,  photographic 
chemicals,  medicinals,  synthetic  resinlike  products,  synthetic  tanning  materials, 
or  explosives,  and  otherwise  speially  provided  for  in  this  title. 

IT.  Change  the  clause  "  all  distillates  which  on  being  subjected  to 
distillation  yield  in  the  portion  distilling  below  two  hundred  degrees 
centigrade  a  quantity  of  tar  acids  equal  to  or  more  than  five  per 
centum  of  the  original  distillate"  to  read  as  follows: 

all  distillates  of  coal-tar,  blast-furnace  tar,  oil-gas  tar,  or  water-gas  tar,  which 
on  being  subjected  to  distillation  yield  in  the  portion  distilling  below  one  hun- 
dred and  ninety  degrees  centigrade  a  quantity  of  tar  acids  equal  to  or  more  than 
five  per  centum  of  the  original  distillate. 

The  reason  for  this  amendment  is  explained  above  under  No.  5. 

18.  Add  the  clause — 

all  mixtures,  including  solutions,  consisting  in  whole  or  in  part  of  any  of  the 
foregoing  except  sheep  dip  and  medicinal  soaps,  not  otherwise  specially  pro- 
vided for  in  this  act. 

The  object  of  this  clause  is  to  avoid  the  possibility  that  mixtures 
of  these  articles  might  be  classified  under  paragraph  5  of  the  act  of 
1913  at  15  per  cent  instead  of  under  Group  II  at  15  per  cent  plus  2^ 
cents  per  pound.  Sheep  dip  and  medicinal  soaps  are  excluded, 
because  they  are  commercially  quite  distinct  articles,  although  they 
mav  contain  products  covered  by  this  law  as  essential  ingredients. 
Sheep  dip  is  on  the  free  list  of  the  act  of  1913,  and  medicinal  soaps 
are  dutiable  at  20  per  cent  ad  valorem  under  paragraph  66_of  the 
act  of  1913.  There  is  no  indication  that  Congress  intended  to  include 
these  articles  under  the  act  of  1916.  This  question  of  mixtures  is  dis- 
cussed more  fully  under  No.  35,  below. 

19.  Insert  the'  words  "  color  acids,  color  bases,  color  lakes,  leuco- 
acids,  leuco-bases,  indoxyl.  indoxyl  compounds,  ink  powders,  syn- 
thetic resinlike  products',  synthetic  tanning  materials,"  so  that  the 
revised  law  reads: 

all  of  the  foregoing  not  colors,  dyes,  or  stains,  color  acids,  color  bases,  color 
lakes,  leuco  acids,  ieuco  bases,  indoxyl,  indoxyl  compounds,  ink  powders,  photo- 
graphic chemicals,  medicinals,  flavors,  synthetic  resinlike  products,  synthetic 
tanning  materials,  or  explosives. 

This  amendment  is  needed  to  conform  to  the  changes  in  Group  III, 
explained  below  (see  Nos.  21,  22,  28,  and  29). 

20.  Omit  the  phrase — 

and  provided  for  in  the  paragraphs  of  the  act  of  October  third,  nineteen  hun- 
dred and  thirteen,  which  are  hereinafter  specifically  repealed  by  section  five 
hundred  and  two. 

This  clause  seems  to  serve  no  useful  purpose  and  may  cause  am- 
biguity in  the  repealing  clause. 

Group  III. — Dutiable  at  30  per  centvmh  plus  5  cents  per  pound. 

21.  Add  the  words  "  Icuco-acids,  and  leuco-bases  whether  colorless 
or  not.  indoxyl  and  indoxyl  compounds;  "  so  that  the  clause  reads: 

Group  III.  All  colors,  dyes,  or  stnins,  whether  soluble  or  not  in  water,  color 
acids,  color  bases,  color  lakes,  leuco-acids,  and  leuco-bases  whether  colorless  or 
not,  indoxyl  and  indoxyl  compounds ;     *     *     * 

945S2— IS 4 


50 

This  question  is  discussed  by  the  commissioners  on  page  13.  In 
the  case  of  many  dyes  there  is  a  closely  related  colorless  compound 
from  which  the  dye  may  be  obtained  easily  and  cheaply  by  a  simple 
oxidation  process.  These  compounds  are  known  as  leuco  acids  and 
leuco  bases,  and  under  the  present  law  could  not  be  classified  in 
Group  III,  since  they  are  not  dyes. 

The  derivation  of  the  term  "  leuco  "  indicates  that  it  is  applied  to 
colorless  compounds,  and  this  was  the  original  use  of  the  term. 
The  use  of  the  term  has,  however,  been  broadened,  and  it  has  acquired 
a  technical  chemical  meaning  to  include  compounds  chemically 
analogous  to  the  original  "  leuco  compounds,"  even  if  not  colorless. 
In  this  sense  leuco  compounds  are  substances  formed  from  dyes  by 
the  chemical  process  known  as  reduction  and  readily  converted  back 
into  dyes  by  the  action  of  air  or  other  oxidizing  agent.  They  are 
usually  colorless  when  pure,  but  not  necessarily  so.  Moreover, 
althougli  many  of  these  compounds  may  be  secured  in  a  colorless  con- 
dition in  the  laboratory  by  the  rigid  exclusion  of  air,  in  the  factory 
it  is  not  feasible  or  necessary  to  secure  them  sufficiently  free  from  the 
dye  to  give  a  colorless  product.  It  was  therefore  suggested  that  the 
phrase  "  whether  colorless  or  not "  should  be  added  in  order  to  make 
it  plain  to  the  court  that  the  terms  "  leuco  acids  and  leuco  bases " 
are  to  be  interpreted  in  a  technical  or  chemical  sense  rather  than 
by  an  exact  translation  of  the  original  Greek  meaning  of  the  term 
"  leuco." 

In  some  cases  these  leuco-acids  and  leuco-bases  are  obtained  in  the 
regular  process  of  making  the  dye  and  require  only  one  more  easy 
chemical  step  to  secure  the  dye  itself.  In  other  cases  they  can  be 
easily  made  from  the  finished  dye. 

In  order  to  make  it  impossible  for  the  German  manufacturers  to 
take  advantage  of  this  fact  as  a  means  of  defeating  the  intent  of 
Congress,  it  is  suggested  that  leuco  acids  and  leuco  bases  should  be 
included  in  Group  III. 

In  the  case  of  indigo  there  is  a  similar  situation,  which,  however, 
can  not  be  cared  for  with  certainty  by  the  same  language.  In  one 
process  for  making  indigo  the  substance  incloxyl  is  obtained  by  a 
complex  chemical  process.  The  last  chemical  process  in  the  indigo 
synthesis  is  to  dissolve  the  indoxyl  in  water  and  blow  air  through 
the  solution.  Indoxyl  is  not  a  dye  and  could  not  be  classified  in 
Group  III  under  the  present  law.  Therefore  the  intent  of  Congress 
to  protect  the  American  indigo  industry  could  be  defeated  by  the 
importation  of  indoxyl  at  the  lower  rate  of  duty  provided  for  articles 
in  Group  II.  It  is  therefore  recommended  that  the  words  "  indoxyl 
and  indoxyl  compounds  "  be  added  to  Group  III. 

22.  Add  "  ink  powders."  There  appears  to  be  a  similar  possibility 
of  evasion  by  taking  advantage  of  paragraph  37  of  the  act  of  1913, 
which  reads,  "  ink  and  ink  powders,  fifteen  per  centum  ad  valorem." 

The  difficulty  arises  in  connection  with  writing  inks,  especially 
inks  of  other  colors  than  black.  Such  writing  inks  often  consist  of 
a  coal-tar  dye  with  a  little  gum  arabic  or  similar  gum  dissolved  in 
water.  In  the  case  of  inks  intended  for  fountain  pens  this  gum  may 
be  omitted  entirely.  The  dye  from  which  such  an  ink  could  be  made 
by  the  simple  addition  of  water  might  be  called  an  ink  powder.  A 
dye  which  would  be  entirely  suitable  for  such  a  purpose  might  be 


51 

invoiced  as  "  ink  powder"  at  15  per  cent,  and  after  it  had  passed  the 
jurisdiction  of  the  customs  authorities  might  be  sold  and  used  for 
the  dying  of  textiles.  The  presence  of  gum  arabic  or  similar  gums 
would  not  prevent  this  use.  In  fact  such  gums  are  necessary  for  dyes 
to  be  used  in  printing  on  textiles. 

It  does  not  seem  probable  that  evasions  would  occur  through  the 
word  "  ink  "  in  spite  of  the  fact  that  nearly  all  inks,  except  black 
inks  and  some  blue  inks,  depend  on  coal-tar  dyes  for  their  color. 
Printing  inks  (other  than  black  and  blue)  usually  consist  of  a  color 
lake  derived  from  a  coal-tar  dye  ground  in  a  vehicle  consisting 
chiefly  of  linseed  oil,  to  which  other  ingredients,  such  as  resin  oil, 
dryer,  thinner,  soap,  etc.,  may  be  added.  Such  an  ink  could  not  be 
utilized  for  dyeing  purposes.  "^Black  writing  inks  usually  consist  of  a 
tannate  of  iron  with  gum  and  are  not  composed  of  coal-tar  dyes. 
Writing  inks  of  colors  other  than  black  consisting  of  a  coal-tar  dye 
with  or  without  gum  in  a  dilute  water  solution  would  be  so  heavy 
in  proportion  to  their  dye  content  that  it  seems  improbable  that  the 
entent  of  Congress  would  be  defeated  by  the  importation  of  such  inks. 

It  therefore  appears  that  the  possibility  of  evasion  will  be  avoided 
if  the  phrase  "  ink  powders  "  is  included  in  Group  III,  where  it  will 
be  qualified  by  the  phrase  "  when  obtained,  derived,  or  manufactured 
in  whole  or  iii  part  from  any  of  the  products  provided  for  in  Groups 
I  or  II."  It  is  not  intended  to  make  any  change  in  the  classification 
of  inks,  which  would  still  fall  within  paragraph  37  of  the  act  of  1913. 

23.  In  place  of  the  word  "  medicinals  "  substitute  the  following : 

"  acetnnilid  suitable  for  medicinal  use,  acetphenetidin.  acetylsalicylic  acid, 
antipyrine,  l:)enzaidehyde  suitable  for  medicinal  use,  benzoic  acid  suitable  for 
medicinal  use,  betanapbthol  suitable  for  medicinal  use,  pbenolphthalein,  re- 
sorcin  suitable  for  medicinal  use,  salicylic .  acid  and  its  salts  suitable  for 
medicinal  use.  salol,  and  other  medicinals. 

The  general  principle  involved  is  discussed  by  the  commissioners 
on  page  12,  the  case  of  salol  being  taken  as  a  typical  example.  The 
object  of  this  amendment  is  to  insure  the  legal  effect  bein^  given  to 
the  intent  of  Congi-ess  in  making  synthetic  medicinals  derived  from 
coal  tar  dutiable  under  this  act.  The  present  law  has  failed  to  ac- 
complish this  because  paragraph  18  of  the  act  of  1913  has  remained 
in  force.  To  make  the  intent  of  Congress  unmistakalile  the  coal-tar 
medicinals  mentioned  by  name  in  paragraph  18  of  the  act  of  1913 
(nameh',  salol.  pbenolphthalein,  acetanilid,  acetphenetidin,  antipy- 
rine, acetylsalicylic  acid,  aspirin)  are  repeated  here,  with  the  excep- 
tion of  aspirin.  Aspirin  is  omitted  because  it  is  the  trade-mark  name 
of  the  substance  acetylsalicylic  acid,  and  the  article  is  included  under 
this  name.  There  are  several  instances  of  articles  which  appear  in 
commerce  in  two  grades,  one  of  which  is  used  as  a  medicinal  and 
the  other  as  an  intermediate  for  dyes  and  other  medicinals.  Each 
of  these  substances  is  mentioned  by  name  in  Group  III  with  the 
restrictive  phrase  "  suitable  for  medicinal  use  "  and  in  Group  II  with 
the  restrictive  phrase  "  not  suitable  for  medicinal  use." 

Phenol  also  is  used  both  as  a  medicinal  and  as  an  intermediate 
especially  for  explosives  and  drugs.  In  the  case  of  phenol,  how- 
ever, the  material  which  is  used  as  an  intermediate  is  usually  of 
a  quality  or  purity  equal  to  that  used  as  a  medicinal  and  therefore 
to  add  the  restrictive  phrase  "  suitable  for  medicinal  use  "  would  in 


52 

effect  raise  the  duty  on  the  material  consumed  as  an  intermediate. 
This  M'ould  involve  a  departure  from  the  intent  of  Congress  in  pass- 
ing the  present  act  and  therefore  this  qualifjdng  phrase  has  not  been 
added  in  the  case  of  phenol. 

24.  Add  "  sodium  benzoate."  This  question  is  discussed  by  the 
commissioners  on  pages  12  and  13. 

This  substance  is  used  chiefly  as  a  preservative  in  food,  although 
it  is  also  used  as  a  medicinal  and  is  included  in  the  United  States 
Pharmacopoeia.  The  claim  could,  therefore,  be  made  that  it  is  cov- 
ered b}'  the  language  of  the  present  law,  although  in  practice  it  is 
now  being  classified  under  paragraph  67  of  the  act  of  1913  dutiable 
at  5  cents  per  pound.  It  is  made  from  benzoic  acid  which  is  dutiable 
:at  a  much  higher  rate  (15  per  cent  plus  2|  cents),  and  there  is,  there- 
fore, an  anomalous  relationship  between  these  two  substances.  It  is 
suggested  that  sodium  benzoate  be  taken  out  of  paragraph  67  of  the 
act  of  1913  and  be  placed  in  Group  III. 

25.  Add  "  saccharin."  This  proposed  amendment  is  discussed  by 
the  commissioners  on  pages  12  and  13. 

The  case  of  saccharin  is  analogous  to  that  of  the  drugs  now  in- 
cluded in  paragraph  18  of  the  act  of  1913.  Saccharin  is  a  flavor 
derived  from  coal  tar  and  is,  therefore,  described  in  general  terms  in 
the  act  of  1916.  It  is  mentioned  by  name  in  paragraph  179  of  the 
act  of  1913,  which  imposes  a  duty  of  65  cents  per  pound.  Saccharin 
is  several  hundred  times  as  sweet  as  sugar.  It  is  included  in  the 
Pharmacopoeia  because  it  is  prescribed  by  physicians  as  a  sweetening 
agent  for  patients  suffering  from  diseases  which  make  it  inadvisable 
for  them  to  consume  sugar.  It  is,  however,  not  regarded  as  a  cura- 
tive agent  itself.  It  was  formerly  used  to  a  considerable  extent  as  a 
sweetening  agent  in  foods  as  a  substitute  for  sugar.  This  use  has. 
however,  been  greatly  reduced  by  the  enforcement  of  the  pure  food 
and  drugs  act.  The  Bureau  of  Chemistry  contends  that  it  is  dele- 
terious to  health  and  a  fraudulent  practice  to  substitute  saccharin  for 
sugar,  since  it  is  without  nutritive  value.  Probably  its  chief  use  is 
as  a  sweetening  agent  for  chewing  tobacco,  which  does  not  come 
within  the  purview  of  the  pure  food  and  drugs  act.  Saccharin  is 
made  from  toluol  and  as  a  consequence  its  manufacture  in  the  United 
States  was  hampered  by  scarcity  and  high  prices  of  toluol  so  long  as 
the  war  continued,  since  the  total  available  supplies  of  toluol  were 
insufficient  for  our  military  needs. 

There  seems  to  be  no  good  reason  to  treat  saccharin  differently 
from  other  medicinals  and  flavors.  At  present  (Nov.  15,  1918)  prices 
of  saccharin  (about  $9  per  pound)  30  per  cent  plus  5  cents  per  pound 
would  be  an  advance  in  the  duty,  but  the  present  prices  are  very  ab- 
normal on  account  of  the  fact  that  toluol,  the  basic  raw  material,  has 
been  abnormally  high  in  price.  At  the  prices  likely  to  prevail  after 
the  war  the  rates  of  the  proposed  bill  will  probably  be  less  than  65 
cents  per  pound,  which  is  the  rate  in  the  act  of  1913. 

26.  Add  "  methyl  salicylate,"  and  "  natural  methyl  salicylate,  or 
oil  of  wintergreen  or  oil  of  sweet  birch."  Oil  of  wintergreen  and 
■oil  of  sweet  birch  are  natural  oils  which  contain  over  99  per  cent  of 
methyl  salicylate.  The  plants  from  which  these  oils  are  derived  are 
native  American  plants. 


53 

The  natural  oils,  which  were  formerly  made  in  the  United  States, 
have  been  ahnost  entirely  driven  out  of  the  market  by  the  synthetic 
methyl  salicylate  made"  from  coal  tar.  No  true  natural  oils  are 
therefore  likely  to  be  imported.  Since  it  is  extremely  difficult  if 
not  impossible^  to  distinguish  between  these  natural  and  artificial 
products  and  quite  impossible  to  detect  large  additions  of  syntlietic 
methyl  salicylate  to  the  natural  oils,  and  since  the  natural  oils  would 
be  dutiable  at  a  lower  rate  under  paragraph  46,  it  seems  best  to 
mention  methyl  salicylate  specifically  and  to  include  both  natural 
and  synthetic  methyl  salicylate. 

Under  the  present  law'  the  synthetic  product  could  be  fraudu- 
lently invoiced  as  oil  of  wintergreen  or  oil  of  sweet  birch,  and  it 
would  be  practically  impossible  for  the  customs  officers  to  secure 
proof  of  the  fraud.  The  proposed  wording  \vould  obviate  this  ad- 
ministrative difficulty. 

Methyl  salicylate  is  used  chiefly  as  a  flavor  (wintergreen)  but 
also  as  a  medicinal  and  to  some  extent  as  a  perfume. 

27.  Add  "  coumarin,  and  other "  and  "  natural  coumarin.*'  This 
case  is  very  similar  to  the  case  of  methyl  salicylate  discussed  above. 
The  substance  coumarin  is  contained  in  several  plants  and  was 
formerly  obtained  connnercially  from  natural  sources  (tonka  beans 
and  deer-tongue  leaves),  but  the  synthetic  product  made  from  coal 
tar  has  practically  driven  the  natural  coumarin  out  of  the  market. 
Its  chief  commercial  use  is  as  a  flavor,  but  it  is  used  to  a  slight 
extent  as  a  perfume.  By  a  decision  of  the  Board  of  General  Ap- 
praisers (Abstract  No.  41691)  rendered  January  10, 1918,  coumarin  is 
held  dutiable  as  a  chemical  compound  at  15  per  cent  under  paragraph 
5  of  the  act  of  1913.  As  the  coumarin  was  imported  prior  to  the 
passage  of  the  act  of  September  S.  191G,  its  classification  imder  that 
act  was  not  in  issue.  It  is  proposed  that  natural  coumarin  be  made 
dutiable  at  the  same  rate  as  synthetic  coumarin  in  order  to  make  it 
unnecessary  for  the  customs  officers  to  attempt  to  distinguish  between 
the  two  products.  This  will  defeat  any  attempt  to  import  synthetic 
coumarin  under  paragraph  5  of  the  act  of  1913,  thus  evading  the 
evident  intent  of  Congress  to  put  flavors  derived  from  coal  tar  under 
the  act  of  September  8,  1916. 

28.  In  place  of  "  synthetic  phenolic  resin  "  substitute  the  follow- 
ing: "  S3'nthetic  phenolic  resin  and  all  resinlike  products  prepared! 
from  phenol,  cresol,  phthalic  anhydride,  coumaron,  indene  or  fromi 
any  other  article  or  material  provided  for  in  Group  I  or  II,  all  of 
these  products  whether  in  a  solid,  semisolid,  or  liquid  condition ;  " 

This  clause  presents  one  of  the  most  perplexing  problems  in  the 
entire  bill.  The  phrase  "  synthetic  phenolic  resins  "  is  not  accurately 
descriptive  of  "the  articles  intended  to  be  covered  by  it. 

The  articles  intended  to  be  covered  by  this  phrase  are  artificial 
products  resembling  resins  in  many  of  their  physical  properties  but 
differing  in  their  chemical  nature  and  chemical  behavior  from 
the  true  natural  resins,  such  as  rosin,  kauri,  and  amber.  They 
are  sometimes  referred  to  in  technical  literature  or  in  patent  desig- 
nations as  "  resins  "  or  "  resinous  compositions,"  but  there  is  no  evi- 
dence that  they  are  ever  bought  and  sold  as  "  synthetic  phenolic 
resin  "  or  as  "  resins."     Each  manufacturer  has  a  trade-mark  name 


r)4 

for  his  own  product,  and  these  trade-mark  names  appear  to  be  used 
in  commercial  transactions  to  the  practical  exclusion  of  all  other 
names.  Among  such  trade-mark  names  are  the  following:  Bakelite, 
Condensite,  and  Redmanol.  Some  manufacturers  sell  the  product 
only  as  a  part  of  a  finished  article,  such  as  electrical  instruments  or 
varnishes,  without  a  separate  designation  for  the  resinous  component. 
There  are  obvious  objections  to  the  use  of  trade  names  in  the  law. 

The  general  principle  that  articles  should  be  designated  in  the 
tariff  law  by  the  names  ordinarily  used  in  their  purchase  and  sale 
can  not  be  followed  in  the  present  case. 

The  first  of  these  products  to  be  developed  commercially  is  made 
by  the  chemical  combination  of  phenol  and  formaldehyde  in  the 
presence  of  a  little  alkali.  "When  these  substances  are  heated  to- 
gether under  pressure  the}^  undergo  a  chemical  combination  or 
"  condensation,"  The  change  is  a  progressive  one,  which  can  be 
stopped  at  any  desired  stage  b}'  the  control  of  the  temperature  and 
duration  of  the  heating. 

The  final  product  is  a  hard,  transparent,  tough,  infusible,  non- 
crystalline substance,  which  resembles  amber  in  appearance  and 
which  is  extraordinarily  inert  chemically.  It  is  not  affected  by 
water,  steam,  oils,  chlorine,  alkalies,  or  dilute  acids;  is  not  soluble 
in  any  known  solvent;  and  is  noninflammable  and  infusible.  It  is 
destroyed  by  boiling  concentrated  mineral  acids,  but  is  not  attacked 
by  less  drastic  chemical  treatment.  It  can  be  made  transparent  and 
colorless,  and  may  be  colored  by  adding  suitable  dyes.  If  desired, 
other  materials,  such  as  wood  pulp,  asbestos  fibers,  or  pigments,  may 
be  incorporated  with  it.  These  additions  make  it  opaque,  less  liable 
to  fracture,  and  cheaper.  In  its  final  form  it  may  be  machined  and 
polished.    It  is  an  excellent  electric  insulator. 

The  usefulness  of  this  material  depends  primarily,  or  at  least  very 
greatly,  on  the  fact  that  the  chemical  process  of  making  it  is  a  pro- 
gressive one  and  can  be  stopped  at  intermediate  stages.  In  the  inter- 
mediate stage,  the  material  is  softened  by  heat  and  rendered  plastic 
so  that  it  can  be  molded  into  the  shape  of  the  finished  article,  such 
as  buttons  or  pipe  stems,  and  the  final  transformation  into  the  finished 
state  is  completed  in  the  mold.  It  can  be  molded  around  metal  parts 
such  as  screws,  electric  binding  posts,  or  electric  switches,  and  thus 
serves  for  the  manufacture  of  electrical  measuring  instruments  and 
machinery. 

The  material  in  the  intermediate  stage  is  made  by  a  few  firms 
operating  under  patents.  These  firms  sell  the  intermediate  stage, 
which  is  still  plastic  when  heated,  to  a  large  number  of  other  firms, 
who  manufacture  a  great  variety  of  finished  articles  by  the  process 
of  molding,  the  transformation  into  the  final  stage  being  completed 
in  the  mold.  The  material  is,  however,  also  sold  in  the  final  chemical 
condition,  in  the  form  of  blocks,  slabs,  rods,  or  tubes,  for  manufacture 
into  finished  articles  by  machining  and  polishing. 

If  the  chemical  combination  between  phenol  and  formaldehyde 
is  stopped  at  a  still  earlier  stage,  a  product  is  obtained  which  is 
soluble  in  a  number  of  volatile  organic  solvents,  and  which  may  be 
applied  as  a  lacquer  or  varnish  or  used  to  impregnate  porous  mate- 
rials, such  as  soft  wood.  The  transformation  into  the  final  stage 
may  then  be  completed  by  heating. 


55 

Phenol  has  become  expensive  since  the  war  began  because  of  its 
importance  in  the  manufacture  of  picric  acid,  and  attention  has  thus 
been  directed  to  the  nse  of  substitutes.  Cresol,  which  resembles 
phenol  in  many  of  its  i)roperties,  has  been  found  to  yield  products 
similar  to  the  resins  made  from  pure  phenol.  Products  of  the  same 
class  may  be  made  by  the  use  of  hexamethylenetetramine  or  para- 
form,  instead  of  formaldehyde. 

Resinous  products  used  chiefly  in  the  manufacture  of  electrical 
instruments  are  also  made  by  the  chemical  combination  of  phthalic 
anhydride,  a  coal-tar  product,  with  glycerine. 

Coumaron  and  indene,  which  are  found  naturally  in  coal  tar,  are 
converted  bv  suitable  chemical  treatment  into  products  wdiich  resem- 
ble the  natural  resins  in  properties  and  use  more  closely  than  any  of 
the  products  discussed  above.  They  are  soluble  in  organic  solvents 
and,  like  the  natural  resins,  are  used  chiefly  in  lacquers  and  varnishes. 

The  phrase  used  in  the  act  of  1916,  ''synthetic  phenolic  resm 
*  *  *  when  obtained,  derived,  or  manufactured  in  whole  or  in 
part  from  any  of  the  products  provided  for  in  Groups  I  and  II "  is 
not  satisfactory  for  the  following  reasons : 

(1)  None  of  the  products  are  identical  with  the  natural  resins 
And  none  are,  therefore, ''  synthetic  resin.''  They  resemble  the  resins 
ill  some  physical  properties,  but  are  different  in  chemical  properties. 

(2)  The 'term  "  phenolic  "  is  unduly  restrictive.  The  term  "  phe- 
nol "  is  used  in  chemical  science  in  a  double  sense— («,)  in  a  specific 
sense  meaning  a  single  substance  CcH^OH  or  hydroxybenzenc ;  (Z>)  as 
a  class  or  group  name  covering  many  other  substances  closely  allied 
to  phenol  in  chemical  structure  and  properties.  Cresol  is  a  member 
of  this  class  of  "  phenols,"  but  the  other  materials  used  in  the  manu- 
facture of  the  resinous  products  discussed  above  are  not  "  phenols." 

It  is  doubtful  whether  the  courts  will  interpret  this  term  "  phe- 
nolic "  in  a  collective  sense,  in  view  of  the  fact  that  elsewhere  in  this 
same  law  the  term  "  phenol "  is  used  in  a  specific  sense  as  distinct 
from  "  cresol."  Furthermore,  even  if  the  term  "  phenolic  "  is  inter- 
preted in  a  broad  sense,  it  could  not  include  phthalic  anhydride, 
coumaron,  nor  indene,  which  are  not  regarded  by  chemists  as  be- 
longing to  the  class  of  "  phenols." 

(3)  These  articles  are  not  bought  and  sold  as  "  synthetic  ]5henolic 
resin,"  but  rather  by  brand  names,  such  as  were  mentioned  above. 

(4)  The  present 'law  uses  the  word  "  resin  "  in  the  singular  num- 
ber; whereas  there  the  several  different  varieties. 

Xo  entirely  unobjectionable  solution  of  the  problem  has  been  found, 
but  the  phraseology  at  the  opening  of  this  section  appears  to  be  the 
best  of  the  many  solutions  which  have  been  considered. 

The  fundame'ntal  difficulty  is  that  these  articles  are  new  creations 
of  chemical  art  for  which  there  is  no  general  name  in  use  in  com- 
merce or  in  the  technical  literature  applicable  to  all.  They  are 
known  bv  trade  names.  It  therefore  appears  to  be  necessary  to 
describe  them  in  terms  of  the  materials  from  which  they  are  made. 

The  phrase  now  in  the  law  is  nevertheless  retained,  in  order  that 
it  may  be  clear  that  there  is  no  intention  to  place  any  articles  now 
covered  by  the  law  outside  of  its  scope.  The  unduly  restrictive  char- 
acter of  the  phrase  is  then  remedied  by  the  addition  of  clauses  which 
broaden  it.    All  of  the  varieties  that  have  been  developed  on  a  com- 


56 

mercial  scale  are  mentioned  specifically.    It  is  probable  that  other  va- 
rieties "will  be  developed  in  the  near  future  and  these  are  provided  for. 
The  leadership  in  the  invention  and  commercial  development  of 
these  products  has  been  taken  by  American  chemists. 

29.  Add  '■  synthetic  tanning  materials."  This  question  is  discussed 
by  the  commissioners  on  page  19. 

These  synthetic  tanning  materials  can  be  made  not  only  from 
phenol  itself,  but  also  from  other  substances  closely  allied  chemically 
to  phenol,  especially  cresols,  and  from  naphthalene. 

30.  In  place  of  '*  or  explosives "  substitute  "  Picric  acid,  trinitro- 
toluol and  other  explosives,  except  smokeless  powders."  Paragraph 
501  of  the  free  list  of  the  act  of  1913  reads  as  follows : 

Gunpowder  and  all  explosives  substances  not  specially  provided  for  in  this 
section  used  for  mining,  blasting,  and  artillery  purposes. 

This  paragraph  was  not  specifically  repealed  by  the  act  of  1916, 
which,  however,  places  a  duty  of  30  per  cent  plus  5  cents  per  pound 
on  ''explosives  *  *  *  when  obtained,  derived,  or  manufactured 
in  whole  or  in  part  from  any  of  the  products  provided  for  in  Groups 
I  and  II."  The  most  important  bursting  charges  for  shells  are  picric 
acid  (and  its  ammonia  salt)  and  trinitrotoluol  (TNT),  which  are 
derived  from  coal  tar  products,  and  ammonium  nitrate,  which  is  not 
derived  from  coal  tar.  Others  of  minor  importance  are  trinitroxylol 
trinitrometacresol,  tetranitroanilin,  tetranitromethylanilin,  and  dini- 
tronaphthalene.  All  of  these  except  ammonium  nitrate  are  clearly 
covered  by  the  language  of  the  act  of  1916.  The  purpose  of  the  pro- 
posed rewording  is  to  make  it  clear  that  the  present  law  controls,  not 
section  501  of  the  act  of  1913. 

Smokeless  powder,  which  is  used  as  a  propellant  for  firing  bullets 
and  shells  from  guns,  contains  about  three-fourths  of  1  per  cent  of 
diphenylamin.  which  is  a  coal-tar  product  mentioned  b}'^  name  in 
Group  II.  Diphenylamin  is  not  an  explosive  itself,  but  is  added  as 
a  stabilizer,  because  it  renders  the  powder  less  liable  to  deteriorate 
during  storage  and  shipment.  A  strict  interpretation  of  the  lan- 
guage of  the  act  of  1916  would  include  such  smokeless  powders,  since 
they  are  made  in  part  from  coal-tar  products.  It  seems  doubtful  if 
it  was  the  intention  of  Congress  to  include  smokeless  powder  on 
account  of  the  incidental  addition  of  coal-tar  products. 

31.  Omit  the  clause  "  not  otherwise  specially  provided  for  in  this 
title."    The  effect  of  this  omission  is  to  strengthen  Group  III. 

32.  Add  "all  of  the  foregoing,"  so  that  the  revised  law  reads: 

all  of  the  foregoing  when  obtained,  derived,  or  manufactured  from  any  of  the 
products  provided  for  in  Group  I  or  II. 

The  purpose  of  this  change  is  to  make  sure  that  this  restrictive 
clause  applies  to  all  of  Group  III. 

33.  Change  "  Groups  I  and  II "  to  read  "  Group  I  or  11."  The 
disjunctive  "or"  is  evidently  intended  rather  than  the  conjunctive 
"and." 

34.  Amend  the  clauses  providing  for  natural  alizarin  and  natural 
indigo  so  that  they  read: 

natural  alizarin  and  natural  ind'go  and  cobirs,  dyes,  stains,  color  acids,  color 
I)ases,  color  lakes,  leuco-acids,  leuco-bases,  indoxyl  and  indoxyl  compounds 
obtained,  derived,  or  manufactured  in  whole  or  in  part  from  natural  alizarin 
or  natural  indigo. 


57 

The  words  "  stains,  color  acids,  color  bases  *  *  *  leuco-acids, 
leiico-bases,  indoxyl  and  indoxyl  compounds  "  are  added  here  for  the 
reasons  explained  under  No.  21. 

35.  Add  "  and  all  mixtures,  including  solutions,  consisting  in  whole 
or  in  part  of  any  of  the  articles  or  materials  provided  for  in  this 
group." 

The  purpose  of  this  amendment  is  to  make  sure  that  mixtures  of 
these  articles  with  each  other  or  with  other  materials  shall  not  be 
held  dutiable  under  paragraph  5  of  the  act  of  1913  at  15  per  cent. 
This  clause  is  not  intended  to  cover  and  would  not  cover  distinct 
articles  of  manufacture  containing  some  dye  or  other  coal-tar  prod- 
uct provided  for  in  the  act  of  1913  in  terms  narrower  or  more  specific 
than  the  clause  in  question.  Numerous  cases  might  be  cited  by  way 
of  illustration.  Thus,  a  lithographic  ink  containing  a  color  lake 
derived  from  a  coal-tar  dye  would  be  more  specifically  provided  for 
as  "  ink."  Similarly,  varnish,  enumerated  in  paragraph  58,  and 
paints  and  crayons,  in  paragraph  G3,  containing  a  coal-tar  product 
which  would  still  be  dutiable  under  the  more  specific  provisions  of 
those  paragraphs.  On  the  other  hand,  in  the  case  of  many  dyes  the 
necessary  intermediates  are  heated  or  melted  with  suitable  inorganic 
reagents,  such  as  sodium  sulphide,  caustic  soda,  or  zinc  chloride, 
thereby  causing  chemical  combinations  resulting  in  the  dye  or  a 
substance  so  nearly  approaching  a  dye  that  it  can  be  converted  into 
a  dye  by  very  simple  or  easy  means.  Such  crude  melts  have  not  been 
articles'  of  commerce  in  the  past,  but  it  is  probable  that  they  could 
be  imported  under  the  present  law  for  the  purpose  of  evading  the 
duty  on  dyes  and  the  finishing  processes  carried  out  in  the  United 
States.  Such  "  crude  melts "  would  be  dutiable  under  this  clause 
piovided  they  contained  the  dye  itself  or  a  color  acid  or  color  base 
or  leuco-acid,  leuco-base,  or  indoxyl  or  indoxyl  compound. 

The  suggestion  that  all  mixtures  "  consisting  in  ivhole  or  in  part " 
of  these  articles  or  material  follows  the  present  tariff  law  and  the 
interpretation  placed  upon  it  by  the  Board  of  General  Appraisers. 
In  the  Fustin  case  (T.  D.,  37562^  see  Appendix,  p.  70)  it  was  decided 
that  a  mixture  of  the  fustic  extract,  a  natural  dye,  with  a  coal-tar 
product  is  dutiable  under  the  act  of  September  8,  1916,  as  it  is  "  ob- 
tained, derived,  or  manufactured  in  whole  or  in  part "  from  coal  tar. 

The  courts  will  not  interpret  the  phrase  "m  part''''  to  include 
merely  incidental  or  immaterial  parts. 

The  principle  covering  such  cases  is  clearly  and  succinctly  enunci- 
ated by  the  Supreme  Court  of  the  United  States  in  Seeberger  v. 
Schlesinger  (152  U.  S.,  587),  wherein,  speaking  of  certain  opera 
glasses  in  minor  part  of  metal,  the  court  says : 

And  in  view  of  the  fact  that,  while  the  metal  Is  not  the  component  of  chief 
value,  it  is  a  substantial  part  of  the  finished  glass,  and  the  framework  upon 
which  the  lenses  and  shell  are  mounted,  we  think  these  articles  should  be 
classed  as  manufactures  of  metal.  We  do  not  wish  to  be  understood  as  hold- 
ins  that,  if  the  metal  be  a  more  incident  or  an  innnaterial  part  of  the  com- 
pleted article,  as,  for  instance,  the  screws  or  knobs  upon  an  article  of  house- 
hold furniture,  or  the  buttons  upon  an  article  of  clothing,  such  articles  should 
lie  classified  as  manufactures  in  part  of  metal ;  but  where,  as  in  this  case,  they 
form  a  necessary  and  substantial  part  of  the  article,  we  think  this  clause 
sliould  determine  their  classification. 

An  alternative  clause  would  be  "  all  mixtures  containing  as  the 
component  of  chief  value  any  of  the  articles  or  materials  provided 


58 

for  in  this  group."  The  administration  of  this  clause  would  be  ex- 
ceedingly difficult  and  lead  to  endless  litigation.  The  "  crude  melts  " 
referred  to  above  are  not  articles  of  commerce  abroad  and  would  be 
imported  solely  for  the  purpose  of  evading  the  duty.  Therefore,  the 
provision  of  the  act  of  1913  which  reads  "  and  the  value  of  each 
component  material  shall  be  determined  by  the  ascertained  value  of 
such  material  in  its  condition  as  found  in  the  article"  can  not  be 
effectively  applied. 

A  clause  "  all  mixtures  containing  as  the  principal  ingredient  by 
weight  any  of  the  articles  or  materials  provided  for  in  this  section  " 
wouJd  be  comparatively  easy  to  administer,  but  the  intent  could  be 
easily  evaded  by  the  addition  of  some  cheap  material  which  is  either 
harmless  or  easily  removed,  such  as  water,  salt,  sand,  or  sawdust 

Section  501. 

36.  Omit  the  clause — 

(except  natural  and  synthetic  alizarin,  and  dyes  obtained  from  alizarin,  anthra- 
cene, and  carbazol ;  natural  and  synthetic  indigo  and  all  indigoids,  whether  or 
not  obtained  from  indigo;  and  medicinals  and  flavors). 

The  matters  of  policy  involved  in  this  suggested  amendment  are 
discussed  by  the  commissioners  on  page  16.  •  Some  additional  details 
only  are  given  here.  The  only  dyes  of  these  classes,  Avhich  were  made 
in  the  United  States  during  1917,  were  indigo,  dibromindigo,  and 
alizarin.  The  production  of  indigo  during  1917  was  only  274,771 
pounds — made  entirely  by  one  company.  Two  additional  companies 
have  begun  the  manufacture  of  indigo  during  1918.  By  the  end  of 
1918  it  is  probable  that  the  production  will  be  at  a  rate  equal  to 
the  normal  consumption  of  indigo  in  the  United  States  unless  the 
producers  are  hampered  by  the  inability  to  secure  acetic  acid.  Acetic 
acid,  which  is  an  essential  raw  material  for  making  indigo,  is  in 
great  demand  for  direct  war  uses,  and  has  been  commandeered  by  the 
War  Department. 

In  addition  14,100  pounds  of  dibromindigo  were  produced  during 
1917.  But  as  only  6,850  pounds  of  this  dye  were  imported  during 
1914  this  dye  is  clearly  of  minor  importance.  It  was  also  reported 
that  1,921,387  pounds  of  "indigo  extract"  were  made  in  the  United 
States,  but  this  was  made  by  treating  imported  indigo  with  sulphuric 
acid.  Alizarin  was  made  by  a  single  producer  but  only  on  a  small 
scale — hardly  more  than  experimental.  Some  so-called  '*  alizarin  "  or 
"'  anthracene  "  dyes  were  made,  but  they  were  not  "  obtained  from 
alizarin  or  anthracene."  For  example,  "  alizarin  yellow  "  is  an  azo 
dye  derived  from  anilin.  "Alizarin  brown  "  or  "  anthracene  brown  " 
is,  in  a  chemical  sense,  a  derivative  of  alizarin  but  its  method  of  manu- 
facture was  such  that  it  can  not  be  said  to  have  been  "  obtained  from 
alizarin  or  anthracene."  It  was  actually  manufactured  from  phthalic 
anhydride  and  gallic  acid. 

37.  Add  the  following  to  section  501: 

Provided,  That  the  special  duties  herein  provided  for  on  colors,  dyes,  or  stains, 
whether  soluble  or  not  in  water,  color  acids,  color  bases,  color  lakes,  leuco- 
acids,  leuco-bases,  indoxyl  and  iudoxyl  compounds,  shall  be  based  on  stand- 
ards of  strength,  which  shall  be  established  by  the  Secretary  of  the  TreasuiT. 
and  that  upon  all  importations  of  such  articles  which  exceed  such  standards 


r)9 

of  strength,  the  special  duty  of  5  cents  per  pounrl  shall  ho  coinidited  on  the 
Avelgrht  which  the  article  would  have  if  it  were  diluted  to  the  standard  str(?nsth, 
liul  in  no  case  shall  any  such  articles  of  wliatever  strenjith  pay  a  special  duty 
of  Ii>ss  tlian  r>  c(>nts  per  pound:  J'rovidcd  further,  Tliat  hesinninfi  six  months 
after  the  date  of  the  passage  of  this  act,  no  package  containing  any  such  color, 
dye,  stain,  color  acid,  color  base,  color  lake,  leuco-acid,  leuco-base,  indoxyl,  or 
iudoxyl  compound,  shall  he  admitted  to  entry  into  the  United  States  unless 
such  package  antl  the  invoice  shall  bear  a  plain,  conspicuous,  and  truly  descrip- 
ti\t'  sialenienl  cf  the  idciitity  and  percentage,  exclusive  of  dilui'iits,  of  such 
color,  dye,  stain,  color  acid,  color  base,  color  lake,  leuco-acid,  leuco-base,  in- 
doxyl or  iudoxyl  compound  contained  therein:  And  provided  further,  That  be- 
ginning six  months  after  the  date  of  the  passage  of  this  act  no  package  con- 
taining any  such  article  shall  be  admitted  to  entry  into  the  United  States  if 
it.  or  the  invoice,  bears  any  statement,  design,  or  device  regarding  such  article, 
or  the  ingredient  or  substances  contained  therein,  which  is  false,  fraudulent, 
or  misleading'  in  any  particular.  In  the  enforcement  of  this  section  tlie  Secre- 
tary of  the  Treasury  shall  adopt  standards  of  strength  which  shall  conform,  as 
nearly  as  practicable,  to  the  connnerciai  strengths  in  u.se  in  the  United  States 
prior  to  .Iidy  tirst,  nineteen  hundred  and  fourteen. 

This  proposed  amendment  is  discussed  by  the  commissioners  on 
page  14, 

It  was  presumably  the  intent  of  Congress  that  the  5  cents  per 
pound  specific  duty  on  dyes  should  be  assessed  on  the  usual  commer- 
cial strength,  but  there  is  no  provision  in  the  present  law  requiring 
that  the  duty  shall  be  assessed  in  that  way.  Very  few  dyes  are 
chemically  pure,  but  they  usually  contain  added  diluents,  such  as 
salt,  sodium  sulnhate.  sodium  phosphate,  dextrine,  gums,  or  water. 

The  practice  of  diluting  the  dyes  had  its  origin  in  many  cases  in 
real  technical  difficulties  involved  in  manufacturing  them  in  pure 
form.  For  example,  synthetic  indigo  is  difficult  to  cUy,  and  when 
once  dried  is  not  as  satisfactory  to  the  dyer  since  it  does  not  pass  into 
solution  readily.  It  has,  therefore,  become  a  trade  custom  to  sell 
indigo  in  a  paste  containing  '20  per  cent  of  true  indigo  and  80  per 
cent  of  water.  In  other  cases  the  process  of  manufacture  yields  a 
product  containing  an  appreciable  percentage  of  salt,  which  does  no 
harm  in  the  dyeing  operations.  The  removal  of  this  salt  would 
unnecessarily  increase  the  cost  of  the  dye.  This  practice,  which  had 
its  origin  in  real  technical  difficulties,  has,  however,  been  abused  by 
the  addition  of  large  and  unnecessary  amounts  of  salt  and  other 
diluents.  In  some  other  cases,  however,  especially  among  the  dyes 
of  minor  importance,  there  is  no  generally  recognized  standard  of 
strength  or  purity  which  is  used  by  all  manufacturers  and  dealers. 

In  some  cases  manufacturers  will  sell  the  same  dye  in  different 
strengths  under  different  names  or  designations.  It  is  common 
practice  for  manufacttirers.  and  especially  dealers  and  spectilators, 
to  add  extra  salt  to  a  dye  to  enable  them  to  undersell  their  com- 
petitors. 

Under  the  present  law  dyes  can  be  imported  into  the  United  States 
in  a  concentrated  form  and  after  passing  through  the  customhouse 
can  then  be  diluted  to  the  usual  commercial  strength  by  the  importer 
or  dealer.  This  practice  makes  it  much  more  difficult  for  the  ap- 
praisers to  detect  undervaluation  and  also  enables  the  importer  to 
escape  in  part  the  specific  duty. 

It  is  suggested  that  all  imports  of  dyes  shall  be  required  to  bear 
a  plain,  conspicuous,  and  truly  descriptive  statement  of  the  identity 
and  percentage  of  the  dye  contained  therein,  and  that  if  false,  fraud- 


60 

ulent,  or  misleading  statements  are  contained  on  the  package  or  the 
invoice  therefor  the  goods  shall  not  be  permitted  to  enter.  It  is 
further  suggested  that  the  specific  duty  shall  be  levied  on  the  basis 
of  the  usual  commercial  strength,  and  that  if  the  dye  is  imported  in 
a  more  concentrated  form,  the  duty  shall  be  computed  on  the  weight 
which  the  dye  would  have  if  it  were  diluted  to  the  usual  commercial 
strength. 

The  Secretary  of  the  Treasury  is  authorized  to  establish  standards 
which  shall  conform  as  closely  as  practicable  to  the  usual  commercial 
strength  in  use  in  the  United  States  prior  to  July  1,  1914.  It  is  now 
and  will  continue  to  be  necessary  for  the  appraisers  to  compare  the 
actual  strength  and  purity  of  imported  dyes  with  the  usual  commer- 
cial strength  of  that  particular  dye,  for  the  purpose  of  checking  the 
valuation.  Therefore,  the  requirement  that  the  identity  and  per- 
centage shall  be  disclosed  will  greatly  facilitate  the  assessment  of 
both  the  ad  valorem  and  specific  duties.  This  requirement  will  make 
it  unnecessary  for  the  appraisers'  laboratory  to  test  every  shipment 
since  they  will  soon  learn  to  distinguish  between  firms  fully  and 
habitually  complying  with  the  laws  and  firms  attempting  to  defraud 
the  Government  by  false  declarations. 

The  primary  purpose  of  this  proposed  amendment  is  to  assist  the 
appraisers  in  preventing  undervaluation  and  to  make  the  specific 
duty  applicable  to  the  usual  commercial  strength,  which  apparently 
was  the  original  intent  of  Congress.  Incidentally,  this  provision  for 
the  truthful  labeling  of  dyes  will  protect  the  consumers  of  dyes 
against  fraud  and  the  American  manufacturers  of  dyes  against  un- 
fair competition  from  foreign  manufacturers.  It  is  a  notorious 
fact  that  unfair  methods  of  competition  such  as  bribery  of  purchas- 
ing agents,  adulteration,  and  misbranding  have  been  especially  preva- 
lent in  the  dye  industry.  This  provision  will  make  it  illegal  for 
German  dyes  to  be  imported  branded  as  Swiss  goods.  Some  diffi- 
culty will  be  experienced  in  establishing  the  standards  of  strength, 
especially  in  the  case  of  the  less  important  dyes.  The  improvement 
in  the  administration  of  the  act,  however,  and  incidentally  the  re- 
straint on  unfair  competition  in  the  dye  trade  will  more  than  over- 
balance these  initial  difficulties. 

38.  Omit  "  during  the  period  of  five  years  beginning  five  years 
after  the  passage  of  this  act "  and  add  "  beginning  September  ninth, 
nineteen  hundred  and  twenty-one."  Omit  "  so  that  at  the  end  of 
such  period  "  and  add  "  until  September  eighth,  nineteen  hundred  and 
twenty-five,  after  which  date  "  so  that  the  revised  law  reads : 

Beginning  September  ninth,  nineteen  liuuclrecl  and  twenty-one,  sucli  special 
duties  shall  be  annually  reduced  by  twenty  per  centum  of  the  rate  imposed 
by  this  section  until  September  eighth,  nineteen  hundred  and  twenty-fiTe,  after 
which  'date  such  special  duties  shall  no  longer  be  assessed,  levied,  or  collected. 

The  present  law  reads: 

During  the  period  of  five  years  beginning  five  years  after  the  passage  of  this 
act  such  special  duties  shall  be  annually  reduced  by  twenty  per  centum  of 
the  rate  imposed  by  this  section,  so  that  at  the  end  of  such  period  such  special 
duties  shall  no  longer  be  assessed,  levied,  or  collected. 

This  clause  is  ambiguous  for  the  reason  that  if  the  duties  were  re- 
duced in  the  manner  specified,  the  special  duties  would  cease  to  be 


61 

assessed  at  the  beginning  of  the  fifth  year  instead  of  at  the  end  of  the 
fifth  year.    This  is  shown  in  the  table  below : 


Special  duty  per 
pound  on— 

Period  of  gradual  reduction. 

Group       Group 

u.          ni. 

Sept.  9, 1921,  to  Sept.  S,  1922 

Cents.        Cents. 
2                   4 

Sept.  9,  1922,  to  Sept.  8,  192.3 

li                 3 

Sept.  9,  1923,  to  Sept.  S,  1924 

1                    2 

Sept.  9,  1924,  to  Sept.  S,  1925 

i                   1 

Sept.  9,  1925 < 

0                    0 

The  proposed  new  wording  preserves  unchanged  the  original  intent 
of  Congress  and  avoids  any  ambiguity  in  regard  to  the  dates  which 
might  result  from  the  repeal  of  the  original  act. 

39.  Omit  the  words — 

but  if,  at  the  expiration  of  five  years  from  the  date  of  the  passage  of  this  act. 
the  President  tiiids  that  tliere  is  not  beiny  manufactured  or  prqduced  within  the 
United  States  as  much  as  sixt.v  per  centum  in  value  of  the  domestic  consump- 
tion of  the  articles  mentioned  in  Groups  II  and  III  of  section  500,  he  shall  by 
proclamation  so  declare,  whereupon  the  special  duties  imposed  by  this  sec- 
tion on  such  articles  shall  no  longer  be  assessed,  levied,  or  collected. 

This  suggested  amendment  is  discussed  by  the  commissioners  on 
page  15. 

10.  Add  the  clause  "  The  Secretary  of  the  Treasury  is  hereby  au- 
thorized to  make  regulations  for  the  enforcement  of  the  provisions  of 
this  title." 

Several  of  the  provision^i  of  the  law  will  require  analyses  or  testing 
of  the  imported  materials.  The  details  of  laboratory  technique  for 
the  tests  should  be  prescribed  by  the  Secretary  of  the  Treasury. 

Section  502. 

11.  In  addition  to  the  paragraphs  of  the  act  of  1913  which  are 
specifically  repealed  in  the  act  of  1916,  repeal  the  following  para- 
graphs or" parts  of  paragraphs  of  the  act  of  1913:  18  (the  provisions 
for  salol,  phenolphthalein,  acetanilid,  acetphenetidin,  antipyrine, 
acetylsalicylic  acid,  and  aspirin),  67  (the  provisions  for  benzoate  of 
soda),  and  179  (saccharin),  so  that  the  proposed  bill  reads: 

That  paragraphs  twenty,  twenty-one,  twent>'-two,  twenty-three,  one  luuidrod 
and  s.vn.t.-.-ninc.  rliree  liunihxMl  and  niiiet.v-lour.  four  hundred  and  (ifty-two, 
and  five  hundred  and  fourteen,  and  the  provision  for  salicylic  acid  in  paragraph 
one.  and  provisions  for  salol,  phenolphthalein,  acetanilid,  acetphenetidin,  anti- 
pyrine, acetylsalicylic  acid,  and  aspirin  in  paragraph  eighteen,  and  the  provision 
for  benzoate  of  soda  in  paragraph  sixty-seven,  and  the  provisions  for  carbolic 
and  phthalic  acids  in  paragraph  three  hundred  and  eighty-seven  of  an  act 
entitled  "An  act  to  reduce  tariff  duties  and  to  provide  revenue  for  the  Govern- 
ment, and  for  other  purposes,"  approved  October  third,  nineteen  hundred  and 
thirteen,  are  hereby  repealed. 

The  effect  of  this  is  to  make  the  repealing  claii.-^es  consistent  with 
the  revisions  already  discu.ssed. 
42.  Add  the  following : 

Provided.  That  all  articles  which  may  come  within  the  terms  of  paragraphs 
one.  five,  thirty-seven,  forty-six,  sixty-three,  five  hundred  and  one,  and  five 
hundred  and  thirty-eight  of  .said  act  of  October  three,  nineteen  hundred  and 


62 

thirteen,  as  well  as  within  the  terms  of  Group  I,  II,  or  III  of  section  500  of 
this  act,  shall  be  assessed  for  duty  or  exempted  from  dutv,  as  the  case  may  be 
under  this  act.  "  ' 

The  paragraphs  of  the  act  of  1913  referred  to  read  as  follows: 

1.  Acids:  Boracic  acid,  |  cent  per  pound;  citric  acid,  5  cents  per  pound- 
formic  acid,  1^  cents  per  pound ;  gallic  acid,  6  cents  per  pound :  lactic  acid' 
li  cents  per  pound ;  oxalic  acid,  1*  cents  per  pound ;  pyrogallic  acid,  12  cents 
per  pound;  salicylic  acid,  2*  cents  per  pound;  tannic  acid  and  tannin,  5  cents 
per  pound;  tartaric  acid,  3^  cents  per  pound;  all  other  acids  and  acid  an- 
hydrides not  specially  provided  for  in  this  section,  15  per  centum  ad  valorem. 

5.  Alkalies,  alkaloids,  and  all  chemical  and  medicinal-  compounds,  prepara- 
tions, mixtures,  and  salts,  and  combinations  thereof  not  specially  provided  for 
in  this  section.  15  per  centum  ad  valorem. 

37.  Ink  and  ink  powders.  15  per  centum  ad  valorem. 

46.  Oils,  distilled  and  essential :  Orange  and  lemon.  10  per  centum  ad  va- 
lorem ;  peppermint.  25  cents  per  pound ;  mace  oil,  6  cents  per  pound ;  almond, 
bitter;  amber;  ambergi'is;  anise  or  anise  seed:  bergamot ;  camomile;  caraway; 
cassia;  cinnamon;  cedrat:  citronella  and  lemon-grass;  civet;  fennel;  jasmine- 
or  jasimine;  .iuniper :  lavender,  and  aspic  of  spike  lavender;  limes;  neroli  or 
orange  flower ;  origanum,  red  or  white ;  rosemary  or  anthoss ;  attar  of  roses ; 
thyme ;  and  valerian ;  all  the  foregoing  oils,  and  all  fruit  ethers,  oils,  and 
essences,  and  essential  and  distilled  oils  and  all  combinations  of  the  same,  not 
specially  provided  for  in  this  section,  twenty  per  centum  ad  valorem :  Provided, 
That  no  article  containing  alcohol  shall  be  classified  for  duty  under  this  para- 
graph. 

63.  Enamel  paints,  and  all  paints,  colors,  pigments,  stains,  crayons,  including^ 
charcoal  crayons  or  fusains,  smalts,  and  frostings,  and  all  ceramic  and  glass 
fluxes,  glazes,  enamels,  and  colors,  whether  crude,  dry,  mixed,  or  ground  with 
water  or  oil  or  with  solutions,  other  than  oil,  not  specially  provided  for  in  this 
section,  fifteen  per  centum  ad  valorem:  all 'paints,  colors,  and  pigments  com- 
monly known  as  artists'  paints  or  colors,  whether  in  tubes,  pans,  cakes,  or  other 
forms,  twenty  per  centum  ad  valorem;  all  color  lakes,  whether  dry  or  in  pulp, 
not  specially  provided  for  in  this  section,  twenty  per  centum  ad  valorem. 

501.  Gunpowder,  and  all  explosive  substances,  not  specially  provided  for  in 
this  section,  used  for  mining,  blasting,  and  artillery  purposes. 

53S.  Madder  and  miin.ieet,  or  Indian  madder,  ground  or  prepared,  and  all 
extracts  of. 

The?^e  paragraphs  can  not  be  repealed  without  qualifications,  be- 
cause they  also  cover  articles  not  derived  from  coal  tar  as  well  as 
coal-tar  products. 

43.  Omit  the  phrase  "  and  so  much  of  said  act  or  of  any  existing 
law  or  parts  of  laws  as  may  be  inconsistent  with  this  title."  The 
inconsistent  portions  are  specifically  repealed  in  the  proposed  bill. 

, ,     .  , ,  Sectiox  503. 

44.  Add: 

That  on  and  after  the  day  when  this  act  shall  go  into  effect  all  of  the  fore- 
going goods,  wares,  and  merchandise  previously  imported,  for  which  no  entry 
has  been  made,  and  all  of  the  foregoing  goods,  wares,  and  merchandise  previ- 
ously entered  without  payment  of  duty  and  under  bond  for  warehousing,  trans- 
portation, or  any  other  purpose,  for  which  no  permit  of  delivery  to  the  importer 
or  bis  agent  has  been  issued,  shall  be  subject  to  the  duties  imposed  by  this  act 
and  to  no  other  duty,  upon  the  entry  or  the  withdrawal  thereof:  Provided.  That 
when  duties  are  based  upon  the  weiebt  of  merchandise  deposited  in  any  pub- 
lic or  private  bonded  warehouse,  said  duties  shall  be  levied  and  collected  upon 
the  weight  of  such  merchandise  at  the  time  of  its  entry. 

This  clause  will  facilitate  the  administration  of  the  act. 

,  ^     ,  , ,  Sectiox  504. 

45.  Add: 

Except  as  otherwise  specially  provided,  this  act  shall  take  effect  on  the  day 
following  its  passage. 


DECISIONS 

OF 

THE  TREASURY  DEPARTMENT 
UNITED  STATES  BOARD  OF  GENERAL  APPRAISERS 

AND  THE 

UNITED  STATES  COURT  OF  CUSTOMS  APPEALS 

UPON  CLASSIFICATION  UNDER 

TITLE  V  OF  THE  ACT  OF  SEPTEMBER  8,  1916 

Chapter  463  (39  Stat.,  756.  793,  794) 


63 


DECISIONS  OF  THE  TREASURY  DEPARTMENT,  UNITED  STATES 
BOARD  OF  GENERAL  APPRAISERS  AND  THE  UNITED  STATES 
COURT  OF  CUSTOMS  APPEALS  UPON  CLASSIFICATION  UNDER 
TITLE  V  OF  THE  ACT  OF  SEPTEMBER  8,  1916. 


Treasury  Department, 

Division  of  Customs^  October  J,  1916. 
The  Collector  of  Customs, 

Ogdenshurg^  N.  Y. 

Sir:  The  department  is  advised  that  certain  trinitrotoluol  imported 
at  the  ports  of  Malone  and  Rouses  Point  in  your  district  is  being  re- 
turned as  dutiable  at  30  per  cent  ad' valorem  and  5  cents  per  pound, 
under  section  500  (Group  3)  and  section  501  of  Title  V  of  the  act  of 
September  8,  1916. 

The  said  rates  are  provided  for  as  applicable  to,  among  other 
things,  "  explosives,  not  otherwise  specially  provided  for  in  this  title, 
when  obtained,  derived,  or  manufactured  in  whole  or  in  part  from 
any  of  the  proclucts  provided  for  in  Groups  1  and  2." 

Paragraph  501  of  the  tariff  act  of  October  3,  1913,  provides  for  the 
free  entry  of  "  all  explosive  substances,  not  specially  provided  for  in 
this  section,  used  for     *     *     *     artillery  purposes." 

Section  502  of  Title  V  of  the  act  of  September  8,  1916,  specifically 
repealed  certain  enumerated  paragraphs  in  both  the  dutiable  arid  free 
lists  of  the  act  of  October  3, 1913,  and  so  much  of  said  act  or  any  ex- 
isting law  or  parts  of  law  as  may  be  inconsistent  with  the  said  title, 
but  paragraph  501  of  the  act  of  1913  is  not  among  those  specifically 
enumerated.  The  paragraphs  repealed  relate  largely  to  coal-tar  dyes, 
products  specifically  enumerated,  and  coal-tar  products  not  specially 
provided  for.  and  the  department  is  of  the  opinion  that  paragraph 
501  of  the  tariff  act  of  1913,  relative  to  explosives  for  specific  uses 
which  was  not  specifically  repealed,  was  not  repealed  by  the  general 
repealing  clause,  and  is  still  in  force.  Of  the  two  provisions  in  ques- 
tion for  explosives  in  the  two  acts,  it  appears  that  that  governed  by 
use  is  the  more  specific  (Magone  v.  Heller,  150  U.  S.,  70). 

The  department  is  of  the  opinion,  therefore,  that  trinitrotoluol,  the 
chief  use  of  which,  it  appears,  is  as  an  explosive  for  artillery  purposes 
(T.  D.  36526).  is  free  of  duty  under  paragraph  501  of  the  tariff  act  of 
1913.    You  will  be  governed  accordingly. 
Respectfully, 

Andrew"  J.  Peters, 
Assistant  Secretary. 

Treasury  Department, 
Division  of  Customs^  Novemher  7,  1916. 
The  Appraiser  or  Merchandise, 

6Jfl  Washington  Street^  New  York,  N.  Y. 
Sir:  I  have  to  acknowledge  the  receipt  of  your  letter  of  the  9th 
ultimo,  relative  to  the  department's  letter  of  the  5th  ultimo  addressed 
to  the  collector  of  customs  at  Ogdensburg  in  regard  to  the  classifica- 

945S2— 18 P  65 


66 

tion  of  certain  explosives  for  specific  uses,  which  were  held  to  be  free 
of  duty  under  paragraph  501  of  the  tariff  act  of  1913. 

The  department  is  of  the  opinion  that  the  general  repealing  clause 
of  section  502,  Title  V  of  the  act  of  September  8,  1916,  repealed  only 
so  much  of  the  act  of  October  3,  1913,  as  relates  to  merchandise 
similar  in  character  to  that  embraced  in  the  paragraphs  specifically 
repealed.  The  department  is  also  of  the  opinion  that  where  the  act 
of  September  8,  1916,  does  not  in  terms  repeal  the  act  of  October  3, 
1913,  the  two  will  stand  so  far  as  effect  can  be  given  to  both,  and 
that  of  two  competing  provisions  in  the  respective  acts,  the  one  which 
is  more  specific  takes  precedence. 

This  ruling  would  apply  to  other  articles  that  may  be  provided 
for  in  general  terms  in  the  new  act,  but  which  are  specifically  pro- 
vided for  in  the  act  of  1913  in  a  provision  therein  not  specifically 
repealed.  Medicinals  provided  for  eo  nomine,  such  as  salol,  phenol- 
phthalein,  acetanilid,  acetphenetidin,  antipyrine,  acetylsalicylic  acid, 
and  aspirin,  in  paragraph  18  of  the  tariff  act  of  1913,  are  more 
specifically  provided  for  under  the  said  paragraph  18  than  under 
the  general  provisions  for  medicinals  of  group  3  of  title  5  of  the  new 
act,  and  the  department  is  of  the  opinion  that  they  are  properly 
dutiable  at  25  per  cent  ad  valorem  under  the  said  paragraph  18  of 
the  act  of  1913. 

In  this  connection  it  may  be  noted  that  the  word  "  carbolic  "  in  the 
acid  paragraph  378  of  the  act  of  1913,  was  specifically  repealed  by 
section  502  of  the  new  act,  although  carbolic  acid,  it  appears,  is  pro- 
vided for  only  in  general  terms  in  the  new  act,  while  the  provisions 
for  salol,  phenolphthalein,  etc.,  were  not  enumerated  in  the  repealing 
clause. 


Kespectfully, 


Wm.  p.  Malbtjrn, 

Assistant  Secretary. 


(T.  D.  37417.) 

Creosote  oil. 

Certain  oil  commercially  known  as  creosote  oil  at  the  time  of  the  passage  of  the 
revenue  act  of  September  8,  1916,  free  of  duty  under  Group  I,  section  500, 
Title  V,  of  that  act,  even  though  on  being  ^ilubjected  to  distillation  it  yields 
in  the  portion  distilling  below  200°  centigrade  a  quantity  of  tar  "acids  equal 
to  or  more  than  5  per  cent  of  the  original  distillate. 

Treasury  Department,  November  23.,  1917. 

Sir  :  The  department  refers  to  your  letter  of  September  29,  1917 
(T.  D.  36667),  relative  to  the  classification  of  certain  creosote  oil 
under  the  act  of  September  8,  1916. 

One  of  the  shipments,  it  appears,  on  being  subjected  to  distillation 
yields  in  the  portion  distilling  below  200°  centigracle  a  quantity  of 
tar  acids  equal  to  or  more  than  5  per  cent  of  the  original  distillate. 
You  express  the  opinion  that  the  merchandise  is  nevertheless  free 
of  duty  under  the  provision  for  creosote  oil  in  Group  I,  section  500, 
Title  V,  of  said  act.  At  other  ports  it  appears  similar  merchandise 
is  assessed  with  duty  at  the  rate  of  15  per  cent  ad  valorem  and  2| 
cents  per  pound  under  Group  II  of  the  said  section  and  section  501 
on  the  ground  that  it  is  not  creosote  oil. 


(57 

It  appears,  however,  that  the  article  was  commercially  bought  and 
sold  as  creosote  oil  at  the  time  of  the  passage  of  the  revenue  act  of 
September  8,  1916,  and  that  a  delivery  of  such  merchandise  would 
have  been  a  good  delivery  for  creosote  oil  without  specifications. 
The  department  therefore  concurs  in  the  view  that  oil  of  the  char- 
acter in  question  is  free  of  dutv  as  creosote  oil  under  Group  I.  sec- 
tion 500,  Title  V,  of  the  act  of  September  8,  191G,  even  though  on 
being  subjected  to  distillation  it  yields  in  the  portion  distilling  below 
200°  centigrade  a  quantity  of  tar  acids  equal  to  or  more  than  5  per 
cent  of  the  original  distillate.  You  will  be  governed  accordingly. 
Respectfully,  L.  S.  Rowe, 

(GTG73.)  Assistant  Secretary. 

Collector  or  Customs,  St.  Paul,  Minn. 


(T.  D.  37429— G.  A.  8110.) 
Artists^  colors — Coal-tar  colors. 

Artists'  colors  or  paints,  derived  from  indigo  and  alizarin,  are  properly  classi- 
fied under  Group  III  of  the  act  of  September  8,  1916,  rather  than  under  the 
provision  for  "  artists'  paints  or  colors,  or  color  lakes  "  in  paragraph  63  of 
the  act  of  October  3,  1913. 

United  States  General  Appraisers,  New  York,  November  23,  1917. 

In  the  matter  of  protest  81529.3  of  Favor,  Ruhl  &  Co.  against  the  assessment  of  duty  by 
the  collector  of  customs  at  the  port  of  New  York. 
[Affirmed.] 

Comstock  cG  Washburn  {Henry  J.  Rode  of  counsel)  for  the  importers. 
Bert  Hanson,  Assistant  Attorney  General   (Charles  D.  Laicrence,  special  at- 
torney), for  the  United  States. 

Before  Board  1  (McClelland,  Sulli^'an,  and  Brown,  General  Appraisers;  Mc- 
Clelland, G.  A.,  not  participating), 

Brow^n,  General  Appraiser:  This  suit  was  brought  under  the  cus- 
toms practice  act,  known  as  the  customs  administrative  act,  to  pro- 
cure a  refund  of  customs  duties  claimed  to  have  been  illegally  exacted 
because  certain  artists'  colors  or  paints  were  classified  by  the  col- 
lector at  the  port  of  New  York  under  Group  III  of  section  500,  Title 
V,  of  the  revenue  act  of  September  8,  1916,  instead  of  under  para- 
graph C3  of  the  act  of  October  3,  1913,  as  the  importers  claim. 

The  record  shows  that  the  first  lot  consists  of  indigo  colors,  which 
was  classified  at  30  per  cent  under  said  section  HOO,  and  the  second 
lot,  alizarin  lakes,  which  was  classified  at  30  per  cent  under  said  sec- 
tion 500,  plus  5  cents  per  pound,  under  section  501  of  said  act  of  1916. 

Group  III  of  section  500  reads  as  f ollow^s : 

Group  III.  All  colors,  dyes,  or  stains,  whether  soluble  or  not  in  water,  color 
acids,  color  bases,  color -lakes,  photographic  chemicals,  medicinals,  flavors,  syn- 
water  or  oil  or  with  solutions  other  than  oil,  not  specially  i)rovided  for  in  this 
title,  when  obtained,  derived,  or  manufactured  in  whole  or  in  part  from  any  of 
the  products  provided  for  in  Groups  I  and  II,  natural  alizarin  and  indigo,  and 
colors,  dyes,  or  color  lakes  obtained,  deyived,  or  manufactured  therefrom,  thirty 
per  centum  ad  valorem. 

The  first  clause  of  section  501  reads  as  follows : 

Sec.  501.  That  on  and  after  the  day  following  the  passage  of  this  act,  in  ad- 
dition to  the  duties  provided  in  section  five  hundred,  there  shall  be  levied,  col- 


68 

lected.  and  paid  upon  all  articles  contained  in  Group  II  a  special  duty  of  2i 
cents  per  pound,  and  upon  all  articles  contained  in  Group  III  (except  natural 
and  synthetic  alizarin,  and  dyes  obtained  from  alizarin,  antliracene,  and  car- 
bazol;  natural  and  synthetic  indigo  and  all  idigoids,  whether  or  not  obtained 
from  indigo ;  and  medicinals  and  flavors)  a  special  duty  of  5  cents  per  pound. 

Paragraph  63  of  the  act  of  1913,  under  which  the  importers  claim, 

reads  as  follows : 

63.  Enamel  paints,  and  all  paints,  colors,  pignients,  stains,  crayons,  including 
charcoal  crayons  or  fusains,  smalts,  and  frostings,  and  all  ceramic  and  glss 
fluxes,  glazes,  enamels,  and  colors,  whether  crude,  dry,  mixed,  or  ground  with 
water  or  oil  or  with  solutions  other  than  oil,  not  specially  provided  for  in  this 
section,  15  per  centum  ad  valorem,  all  paints,  colors,  and  pigments  commonly 
known  as  artists'  paints  or  colors,  whether  in  tubes,  pans,  cakes,  or  other  forms, 
20  per  centum  ad  valorem ;  all  color  lakes,  whether  dry  or  in  pulp,  not  specially 
provided  for  in  this  section,  20  per  centum  ad  valorem. 

It  was  in  evidence  that,  prior  to  the  passage  of  the  act  of  September 
8.  1916,  the  merchandise  in  question  was  classified  under  paragraph 
63  of  the  act  of  1913,  under  which  the  importers  now  claim. 

The  portion  of  the  act  of  1916  dealing  with  the  tariff  bears  the 
heading  "  Title  V. — Dyestuffs,"  and  the  repealing  clause  is  contained 
in  section  502,  and  reads  as  follows: 

502.  That  paragraphs  twenty,  twenty-one,  twenty-two,  and  twenty-three  and 
the  words  "  salicvlic  acid  "  in  paragraph  one  of  Schedule  A  of  section  one  of 
an  act  entitled  "An  act  to  reduce  tariff  duties  and  to  provide  revenue  for  the 
Government,  and  for  other  purposes,"  approved  October  third,  nineteen  hundred 
and  thirteen,  and  paragraphs  three  hundred  and  ninety-four,  four  hundred 
and  fifty-two,  and  five  luindred  and  fourteen,  and  the  words  "carbolic"  and 
"  phthalic,"  in  paragraph  three  hundred  and  eighty-seven  of  the  "  free  list " 
of  section  one  of  said  act,  and  so  much  of  said  act  or  any  existing  law  or  parts 
of  law  as  may  be  inconsistent  with  this  title  are  hereby  repealed. 

The  importers  claim  that,  there  being  nothing  express  in  the  act 
about  paints,  colors,  or  pigments,  nor  any  reference  to  any  of  the 
other  articles  named  in  paragraph  63  of  the  act  of  1913,  nor  to  the 
paragraph  itself,  it  is  plain  Congress  intended  to  repeal  the  coal-tar 
paragraphs  of  the  tariff  act  of  1913,  and  to  admit  free  of  duty  coal- 
tar  crudes  and  to  levy  duty  upon  coal-tar  intermediates  and  coal-tar 
colors  and  certain  acids  oiily.  Further,  that  it  would  be  a  repeal  by 
implication  to  construe  the  language  found  at  the  end  of  section  502 
of  the  act  of  1916  as  intended  to  repeal  the  provisions  of  paragraph  63. 

The  importers  further  contend  that  there  is  nothing  mconsistent 
or  repugnant  between  the  new  act  and  paragraph  63,  the  new  act 
dealing  with  the  coal-tar  colors  and  dyes,  whereas  paragraph  63  ot 
the  tariff  act  embraces  paints,  colors,  and  pigments,  which,  they  clami, 
are  an  entirely  different  class.  n     ^i    .  xi 

The  GoA-ernment's  counsel,  on  the  other  hand,  contends  that  the 
act  of  1016  does  refer  to  "  colors,"  which  are  likewise  mentioned  in 
paragraph  63.  and  enumerates  "  other  articles  named  in  paragraph 
63,"  notably  "stains"  and  "color  lakes,"  and  that  these  latter  arti- 
cle's are  mentioned  in  both  Group  II  and  Group  III  of  section  500  of 
the  act  of  1916,  and  that  Groups  II  and  III  enumerate  "photo- 
graphic chemicals,"  "  medicinals,"  and  "  flavors." 

This,  he  claims,  shows  an  intention  on  the  part  of  the  Congress 
by  the  lan<yuaire  of  the  act  of  1916  to  invade  not  only  the  so-called 
coal-tar  paragraphs  of  the  act  of  1913,  but  a  number  of  other  portions, 
=!uch  as  paragraphs  5.  16,  and  17,  which  provide  for  chemical  and 
medicinal  compounds,  and  paragraph  49  which  provides  in  part  for 


69 

"  da voring  extracts  *  *  *  and  all  natural  or  synthetic  odorifer- 
ous or  aromatic  sub^ances." 

Much  can  be  said  for  both  these  contentions  as  affecting  the  general 
scope  and  purposes  of  the  act. 

A  subject  matter  such' as  this,  having  the  complicated  nomencla- 
ture of  the  coal-tar  hydrocarbons,  renders  it  difficult  to  formulate  a 
tariff  policy  levying  a  proper  tax  upon  the  crudes,  intermediates,  and 
advanced  products  of  this  character.  This  fact  might  explain  why 
only  the  so-called  coal-tar  paragraphs  are  dealt  with  in  the  repealing 
clause  in  addition  to  the  repeal  of  the  words  "  salicylic  acid,"  "  car- 
bolic," and  "  phthalic  "  in  the  acid  paragraphs,  and  in  the  specific 
repeal  of  the  indigo  and  alizarin  paragraphs  of  the  free  list.  The 
draftsman  adopted  this  form  either  trusting  to  the  possible  effect  of  a 
general  blanket  phrase  at  the  end  repealing  "  so  much  of  said  act  or 
any  existing  law  or  parts  thereof  as  may  be  inconsistent  with  this 
title."  Or,  on  the  other  hand,  by  this  general  phrase,  abandoning  an 
effort  to  go  into  any, other  paragraphs  of  the  act  of  1913  and  take  out 
particular  subjects. 

The  cases  of  Movius  v.  Arthur  (95  U.  S.,  144)  and  Arthur  v.  Lahey 
(96  U.  S.,  112)  tend  to  support  the  view  that  a  general  phrase  repeal- 
ing inconsistent  parts  of  existing  law  would  have  no  further  effect 
than  would  the  inconsistency  itself,  and  would  operate  no  further 
than  an  implied  repeal. 

On  the  other  hand,  the  extreme  difficulty  of  making  an  express 
enumeration  which  would  segregate  out  of  a  tariff  act  the  limitless 
number  of  compounds  of  carbon  treated  of  in  chemistry  under  the 
head  of  coal-tar  products,  might  indicate  a  purpose  in  such  general 
repealing  clause  of  much  wider  scope  than  ordinarily  attaches  thereto. 

Again,  the  fact  that  the  limiting  expression  "  provided  for  in  the 
paragraphs  of  the  act  of  October  3,  1913,  which  are  hereinafter  spe- 
cifically repealed  by  section  502  "  as  affecting  the  preceding  enunieret- 
tion,  appears  at  the  bottom  of  Group  II,  and  onlj^  there,  increases  the 
difficulty  of  laying  down  a  general  rule  which  would  cover  the  con- 
gressional purpose  in  enacting  the  act  of  September  8,  1916. 

But  it  is  unnecessary'  in  this  case  to  determine  such  general  purpose, 
because  if  we  assume  that  the  general  repealing  clause  "  so  much  of 
said  act  or  any  existing  law  or  parts  of  laws  as  ma}'  be  inconsistent 
with  this  title  are  hereby  repealed,"  does  nothing  more  than  add  the 
new  act  to  the  old,  so  that  the  two  shall  be  construed  together  as 
part  and  parcel  of  the  same  enactment,  the  importers'  claim  that 
the  goods  should  be  classified  mider  the  provision  of  the  act  of  1913 
would  still  be  untenable. 

For  some  purpose,  not  certainlj'-  determinable  from  the  terms  of 
the  act  itself,  perhaps-  because  a  coal-tar  indigoid  or  compound  of 
alizarin  is  difficult  to  distinguish  from  the  natural  derivatives  thereof, 
natural  indigo  and  natural  alizarin  "  and  colors,  dyes,  or  color  lakes 
obtained,  derived,  or  manufactured  therefrom  "  are  included  in  this 
act,  which  deals  primarily  with  coal-tar  products.  In  thus  including 
them  the  Congress  has  used  language  so  distinct  and  specific  that 
without  reference  to  the  general  purposes  of  the  act  or  a  determination 
of  the  general  effect  of  the  repealing  clause  we  may  come  to  a  conclu- 
sion in  this  case  upon  the  particular  subject  matter  before  us. 


70 

It  seems  clear  an  expression  coverini^  a  color  obtained,  derived,  dr 
manufactured  from  natural  indigo  (last  clause  of  Group  III)  is  more 
specific  than  the  expression  in  paragraph  63  of  the  act  of  1913,  "  all 
paints,  colors,  and  pigments,  commonly  known  as  artists'  paints  and 
colors,  whether  in  tubes,  pans,  cakes,  or  other  forms."  And,  secondly, 
that  an  expression  which  includes  "  color  lakes  "  obtained,  derived, 
or  manufactured  from  natural  alizarin  is  likewise  more  specific  than 
the  provision  in  paragraph  63  for  "  all  color  lakes,  whether  dry  or  in 
pulp,  not  specially  provided  for  in  this  section,"  or  the  expression 
covering  "  artists'  paints  or  colors  "  just  quoted.  While  the  language 
"  colors  derived  from  natural  alizarin  or  indigo  "  includes  colors  that 
are  not  artists'  colors,  and  is,  therefore,  less  specific  as  to  the  use  than 
the  provision  of  paragraph  63,  it  is  clearly  so  much  more  specific  as 
to  the  material  indigo  (or  alizarin)  as  compared  with  artists'  colors 
made  from  all  sorts  of  materials  that,  on  the  whole,  it  must  necessarily 
be  considered  the  narrower  provision,  showing  a  congressional  intent 
to  tax  these  indigo  and  alizarin  artists'  colors  at  the  higher  rates  pre- 
scribed by  the  new  act. 

There  is  no  question  in  this  case  concerning  the  additional  specific 
duty  of  5  cents  per  pound  upon  the  indigo  compounds  in  question,  for 
under  the  form  of  the  classification  it  is  not  claimed  h^  the  Govern- 
ment, and,  therefore,  it  is  not  before  us  for  decision,  as  to  whether 
or  not  the  5  cents  per  pound  provision  applies.  The  collector  has, 
however,  assessed  a  special  duty  of  5  cents  per  pound  under  section 
501  upon  the  alizarin  lakes,  and  in  the  absence  of  testimony  tending 
to  show  that  the'  substance  here  involved,  although  an  artists'  color,, 
is  technically  a  dye  (alizarin  dyes  being  exempt  from  the  additional  5 
cents  a  pound),  we  must  sustain  the  classification  in  that  respect  upon 
the  record  now  before  us. 

Judgment  is  rendered  in  favor  of  the  Government,  overruling  the 

protest. 

Befoee  Board  1,  January  28,  1918. 

No.  41779.— Protest  842787  of  G.  A.  &  E.  Meyer  (New  York). 

Paint  Boxes — Color  Lakes. — Paint  boxes,  classified  as  toys  at  35 
per  cent  ad  valorem  under  paragraph  312,  tariff  act  of  1913,  are 
claimed  dutiable  as  artists'  colors  at  20  per  cent  under  paragraph  63. 
Rose  madder,  classified  as  a  coal-tar  color  lake  at  30  per  cent  ad 
valorem  and  5  cents  per  pound  under  the  act  of  September  8,  1916, 
is  claimed  dutiable  as  a  color  lake  at  20  per  cent  under  paragraph  63, 
tariff  act  of  1913.  ^ 

Opinion  by  Sullfvax,  G.  A.  The  paint  boxes  in  question  were  held 
dutiable  as  artists'  colors  and  the  rose  madder  as  a  color  lake  at  20 
per  cent  ad  valorem  under  paragraph  63. 


(T.  D.  37652— G.  A.  8170.) 
Fustin. 

The  broad  language  of  Group  III.  section  500,  act  of  September  8.  1916,  cover- 
ing all  colors,  dyes,  and  stains,  "  not  otherwise  provided  for  in  this  title, 
when  obtained,  derived,  or  manufactured  in  whole  or  in  part  from  any  of 
the  products  provided  for  in  Groups  I  and  II,"  requires  classification  of 
fustin  (a  compound  of  fustic  extract  and  about  3*  per  cent  of  diazo  ben- 
zine) under  that  act,  because  the  diazo  benzine  therein  is  a  product  of  coal 


71 

t;ii-  aiiioiif;-  rliose  proviiled  for  in  Gnuips  I  and  II,  the  words  "'in  part" 
removing  anv  question  as  to  tbe  amount  of  diazo  l)enzine  discussed  in  the 
Ross  case,  G.  A.  8041  0)2  Treas.  Dec,  310)  and  the  case  of  Innis.  Speiden 
&  Co..  G.  A.  7611  (2T  Treas.  Dec,  2SG).  The  claim  under  paragraph  30 
act  of  1913,  as  an  extract  of  vegetable  origin  is  therefore  overruled. 

United  States  General  Appraisers,  New  York,  May  24,  1918. 

In  the  matter  of  protest  848116  of  Innis,  Speiden  &  Co.  against  the  assessment  of  duty  by 

the  collector  of  customs  at  the  port  of  New  York. 
[AfRrmod.] 

Strauss  tt-  Hedges  {Jacob  L.  KUngaman  of  counsel)  for  the  importers. 
Bert  Hanson,   Assistant   Attorney   General    {Harry  M.   Farrell,   special   at- 
torney), for  the  United  States. 

Before  Board  1  (McCr-ULLAND,  Sulliva.x,  and  Buowx,  General  Appraisers). 

Browx,  General  Appraiser:  This  case  was  brought  by  protest  under 
the  statutory  customs  procedure  to  dctoruiinc  the  qucaticn  of  whether 
certain  fustin,  a  compound  of  fustic  extract  and  diazo  benzine,  was 
properly  classified  by  the  collector  at  30  per  cent  ad  valorem  and  5 
cents  per  pound  under  sections  500  and  501,  Group  III,  Title  V,  of 
the  act  of  September  8,  1916;  or  whether  it  is,  as  claimed  by  the 
importers,  more  specifically  provided  for  under  paragraph  30  of  the 
act  of  1913  at  three-eighths  of  1  cent  per  pound  as  an  extract  of 
vegetable  origin  suitable  for  dyeing,  coloring,  or  staining. 

The  record  shows  that  diazo  benzine  is  a  coal-tar  product  and 
constitutes  3^  per  cent  of  the  compound,  and  that  the  fustin  in  ques- 
tion is  of  the"  same  character  as  the  merchandise  under  consideration 
in  the  case  of  W.  A.  Boss  &  Bro.,  G.  A.  8041  (32  Treas.  Dec,  310), 
the  record  in  which  case  is  incorporated  herein  as  part  hereof. 

It  appears  from  the  record  in  the  incorporated  case  that  diazo 
benzine  or  diazo  benzine  sulphide  is  a  coal-tar  product. 

Section  500,  Group  I,  after  enumerating  a  number  of  substances, 
covers  "all  other  products  that  are  found  naturally  in  coal  t:ir, 
whether  produced  or  obtained  from  coal  tar  or  other  source,  and  not 
otherwise  specially  provided  for  in  this  title,"  and  Group  III  provides 
for  a  30  per  cent  duty  on  "  all  colors,  dyes,  or  stains,  *  *  *  not 
otherwise  specially  provided  for  in  this  title,  when  obtained,  derived, 
or  manufactured  in  whole  or  in  part  from  any  of  the  products  pro- 
vided for  in  Groups  I  and  II." 

The  paragraph  under  which  the  importers  claim  reads  as  follows : 

30.  Extracts  and  decoctions  of  nutgalls,  Persian  berries,  sumac,  logwood,  and 
other  dyewoods,  and  all  extracts  of  vegetable  origin  suitable  for  dyeing,  color- 
ing, or  staining,  not  specially  provided  for  in  this  section;  all  the  foregoing 
not' containing  alcohol  and  not  medicinal,  three-eights  of  1  cent  per  pound. 

As  diazo  benzine  is  a  product  of  coal  tar,  we  hold  that  the  fustin 
here  involved  is  a  color  ov  dye  obtained,  derived,  or  maniifactured  in 
part  from  such- coal-tar  product,  and  therefore  comes  within  the  terms 
of  Groups  I  and  III,  act  of  1916,  and  also  within  the  provision  of 
section  501  which  levies  an  additional  duty  of  5  cents  per  pound 
"  upon  all  articles  contained  in  Group  III  (except  natural  and  syn- 
thetic alizarin  and  dyes  obtained  from  alizarin,  anthracene,  and  car- 
bozol ;  natural  and  synthetic  indigo  and  all  indigoids.  whether  or  not 
obtained  from  indigo:  and  medicinals  and  flavors)." 


72 

The  insertion  of  the  words  "  in  part "  eliminates  the  question  of 
quantity  considered  in  G.  A.  8041  (32  Treas.  Dec.,  310),  and  while  it 
is  true  that  the  larger  percentage  of  the  compound  is  clearly  an 
extract  of  vegetable  origin  suitable  for  dyeing,  coloring,  or  staining, 
nevertheless,  as  the  new  act  covers  any  color,  dye,  or  stain  manu- 
factured in  part  from  a  coal-tar  product,  the  provisions  of  the  act  of 
1916  must  be  held  to  be  more  specific  than  the  provision  for  extracts 
of  vegetable  origin. 

The  protest  will  therefore  be  overruled. 


Befoee  Boaed  1,  JIay  29,  1918. 
No.  42236.— Protests  811270,  etc.,  and  850209  of  A.  de  Ronde  &  Co.  (New  York). 

Bleachers'  Tint — Coal-Tar  Colors. — Bleachers'  tint,  classified  as 
a  coal-tar  color  under  the  act  of  1916,  was  claimed  dutiable  as  a  non- 
enumerated  manufactured  article  at  15  per  cent  under  paragraph  885. 

Opinions  by  Brown,  G.  A.  Bleachers'  tint  was  held  dutiable 
under  paragraph  385.     Abstract  33757  followed. 


(T.  D.  37661.) 
Homotropine  hyclrobromide — Coal-tar  mediGinals. 

Hoinotropine  hydrobromide  and  similar  medicinal  preparations  composed  in 
part  of  coal  tar  dutiable  at  the  rate  of  30  per  cent  ad  valorem  under  Group 
HI,  section'500,  Title  Y,  act  of  September  8.  1916. 

Treasury  Department,  June  4,  1918. 

Sir  :  The  department  refers  to  your  letter  of  the  28th  ultimo  and 
other  correspondence  relative  to  the  proposed  change  in  practice  in 
the  classification  of  homotropine  hydrobromide  and  other  similar 
medicinal  preparations  composed  in  part  of  coal-tar  products,  though 
not  in  chief  value  of  such  products. 

It  appears  that  it  has  been  the  practice  to  assess  such  articles  with 
duty  as  medicinal  preparations  under  the  tariff  act  of  1913  under 
either  paragraph  5  or  17,  according  to  the  form  of  packing,  and  not 
to  classify  medicinals  under  the  act  of  September  8.  1916,  unless  in 
chief  value  of  coal  tar. 

The  composition  of  homotropine  hydrobromide  is  as  follows: 
Tropine,  39.35  per  cent;  mandalic  acid,  37.95  per  cent;  hydrobromic 
acid,  22.75  per  cent.  The  mandalic  acid  constituent  is  prepared  from 
coal-tar  products  provided  for  in  Group  II,  section  500,  Title  V,  of 
the  act  of  September  8,  1916  (T.  D.  36667  of  Sept.  12,  1916).  It  is 
proposed  to  change  the  classification  of  homotropine-  hydrobromide 
and  similar  medicinal  preparations  to  medicinals  dutiable  at  30  per 
cent  ad  valorem  under  Group  III,  section  500,  Title  Y,  of  the  act  of 
September  8,  1916,  under  the  provision  thereof  for  "medicinals 
*  *  *  not  specially  provided  for  *  *  *  when  obtained,  de- 
rived, or  manufactured  in  whole  or  in  part  from  any  of  the  products 
provided  for  in  Groups  I  and  II." 

The  phrase  "  in  part  of  "  has  been  passed  upon  by  the  Board  of 
United  States  General  Appraisers  and  the  courts  in  various  deci- 


73 

sions— T.  D.  24946,  T.  D.  26823,  T.  D.  27897.  T.  D.  28105.  T.  D.  28516, 
and  T.  T>.  2S'')41 — and  has  been  generally  construed  as  indicpting  an 
intent  to  In-ing  within  its  scope  articles  containing  a  component  mak- 
ing up  only  a  part  of  the  article,  even  if  snch  part  is  not  its  chief 
component  of  A-aliie.  The  department  is  therefore  of  the  opinion 
that  the  provision  in  question  of  the  act  of  September  8, 1916,  includes 
the  articles  in  question  as  well  as  do  the  provisions  mentioned  for 
medicinal  preparations  of  the  tariff  act  of  1913.  It  is  ah;o  of  the 
opinion  that  the  said  provision  of  the  act  of  September  8,  1916,  is 
more  specific  than  the  provisions  in  question  covering  medicinal 
preparations  of  the  tariff  act  of  1913.  (Xote  T.  D.  37429  of  Nov.  23, 
1917,  relative  to  certain  artists'  colors.) 

The  department  therefore  concurs  in  the  proposed  change  in  the 
classification,  and  you  will  be  governed  accordingly  on  merchandise 
of  the  character  in  question  imported  or  withdrawn  from  warehouse 
30  days  after  the  date  hereof. 

The  following  are  some  of  the  medicinals  to  which  this  ruling  will 
apply  in  addition  to  homotropine  hydrobromide :  Eserine  salicylate, 
theobromine  salicylate,  caffeine  sodium  benzoate,  atropine  salicylate, 
bismuth  subsalicylate,  bismuth  benzoate,  bismuth  borophenate,  guaia- 
col  benzoate,  and  guaiacol  salicylate. 

Eespectfully,  L.  S.  Rowe, 

(104297.)  Assistant  Secretary. 

Collector  of  Customs,  New  York. 


(T.  D.  37679— G.  A.  8176.) 
Creosote  oil. 

In  the  absence  of  evidence  dealing  witli  the  general  characteristics  of  the  sub- 
stances mentioned  in  Group  I  of  section  .500  of  the  tariff  portion  of  the  rev- 
enue act  of  1916  to  indicate  a  contrary  intent,  held,  on  the  evidence  in  this 
record,  that  certain  creosote  oil  here  under  consideration  is  free  of  duty 
under  the  eo  nomine  provision  therefor.  The  provision  covering  "  all  other 
distillates  which  on  being  subjected  to  distillation  yield  in  the  portion  dis- 
tilling below  two  hundred  degrees  centigrade  a  quantity  of  tar  acids  less 
than  five  per  centum  of  the  original  distillate,"  is  not  applicable  to  creosote 
oil. 

United  States  General  Appraisers,  New  York,  June  14,  1918. 

In  the  matter  of  protest  826511  of  A.  W.  Fentou,  jr.,  against  the  assessment  of  duty  by 
the  collector  of  customs  at  the  port  of  Cleveland. 

[Reversed.] 

Curie,  Smith  &  MaxxoeU  {Albert  MeCIelland  Barnes  of  counsel)  for  the  im- 
porter. 

Bert  Hanson,  Assistant  Attorney  General  (CJias.  D.  Lawrence  and  Samuel 
Isenschmid,  special  attorneys),  for  the  United  States. 

Before  Board  1  (McClelland,  Sullivan,  and  Bkown,  General  Appraisers). 

Broavn,  General  Appraiser:  This  case  was  brought  under  the  legal 
procedure  provided  by  the  customs  administrative  act  to  procure  the 
refund  of  duty  claimed  to  have  been  illegally  exacted  by  the  collector 
of  customs  at  the  port  of  Cleveland.  The  trial  was  had  in  part  at 
Cleveland  and  in  part  by  continuance  at  New  York. 


74 

The  merchandise  was  classified  for  duty  as  a  coal-tar  distillate^ 
which  on  being  subjected  to  distillation  yields  in  the  portion  distilling 
below  200°  C.  a  quantity  of  tar  acids  equal  to  or  more  than  5  per  cent 
of  the  original  distillate,  at  15  per  cent  ad  valorem  and  2|  cents  per 
pound  under  Group  II,  section  500  and  section  501,  of  the  tariff  por- 
tion of  the  revenue  act  of  1916. 

The  importer  claims  that  the  merchandise  is  creosote  or  dead  oil, 
and  as  such  is  specifically  enumerated  and  provided  for  in  Group  I 
of  section  500  of  said  act,  and  is  therefore  free  of  duty. 

Group  I  of  said  act,  title  "  Free  list."  after  enumerating  a  number 
of  substances  of  certain  purity,  concludes  with  the  following : 

*  *  *  Pyridin.  quinolin,  toluol,  xj^ol,  crude  coal  tai',  pitch  of  coal  tar,  dead 
or  creosote  oil,  anthracene  oil,  all  other  distillates  which  on  being  subjected  to 
distillation  yield  in  the  portion  distilling  below  two  hundred  degrees  centigi'ade 
a  quantity  of  tar  acids  less  than  five  per  centum  of  the  original  distillate,  and  all 
other  products  that  are  found  naturally  in  coal  tar,  whether  produced  or  obtained 
from  coal  tar  or  other  source,  and  not  otherwise  specially  provided  for  in  this 
title,  shall  be  exempt  from  duty. 

The  local  appraiser,  in  claiming  that  the  merchandise  is  not  free 
of  duty,  asserts  that  the  clause  appearing  in  Group  I  of  section  500, 
reading  "  all  other  distillates  which  on  being  subjected  to  distillation 
yield  in  the  portion  distilling  below  two  hundred  degrees  centigrade 
a  quantity  of  tar  acids  less  than  five  per  centum  of  the  original  dis- 
tillate," applies  to  creosote  oil  and  all  the  other  articles  specifically 
mentioned  in  Group  I,  and  as  the  record  shows  that  the  tar  acids 
here  distilling  under  200°  C.  amounted  to  more  than  5  per  cent, 
claims  that  the  Congress  intended  to  place  duty  on  this  form  of 
creosote  oil. 

But  it  seems  to  us  that  the  "  all  other  distillates  "  referred  to  mean 
distillates  not  specially  mentioned  by  name,  and  that  creosote  oil  was 
intended  to  be  made  free,  irrespective  of  the  limitation  referred  to. 
This  seems  to  be  the  natural  meaning  of  the  words  as  used  by  the 
Congress,  and  there  is  nothing  in  the  evidence  in  this  record  which 
would  indicate  a  contrary  intention. 

Therefore,  on  the  record  now  before  us,  we  hold  the  merchandise 
in  question  free  of  duty  under  the  free-list  provision,  Group  I  of 
section  500  of  the  act  of  1916. 


Before  Board  1,  July  29,  1918. 
No.  42413.— Protest  817341  of  G.  A.  &  E.  Meyer   (New  York). 

•  Coal-Tar  Colors — Tuscan  Eed. — Merchandise  invoiced  as  "  Tus- 
can red,"  returned  as  a  coal-tar  color  lake,  and  classified  at  30  per 
cent  ad  valorem  plus  5  cents  per  pound  under  the  act  of  September  8, 
1916,  is  claimed  dutiable  at  20  per  cent  under  paragraph  63,  tariff  act 
of  1913,  as  color  lakes. 

Opinion  by  Brown,  G.  A.  The  merchandise  was  found  to  be  the 
same  as  that  the  subject  of  decision  in  Abstract  40363,  and  following 
that  decision  it  was  held  properly  classified  at  30  per  cent  ad  valorem 
plus  5  cents  per  pound  under  section  500  (Group  III)  and  section 
501  of  Title  V  of  the  act  of  September  8,  1916. 


10 

(T.  D.  37740— G.  A.  8192.) 
Oresol. 

Considoriiis  only  the  comnion  Tiicanins  of  (he  words  of  (he  statute,  certain  mer- 
chandise consisting  of  more  than  5  per  cent  of  phenol,  more  than  50  per 
cent  of  cresols,  and  more  than  5  per  cent  of  tar  acids  distilling  below  200° 
C.  is  free  of  duty  under  Group  I.  act  of  1916,  as  cresol,  and  not  dutiable 
under  Group  II  of  said  act— Case  of  Fenton,  jr.,  G.  A.  8176  (T.  D.  37679), 
followed. 

United  States  General  Appraisers,  New  York,  August  9,  1918. 

In  the  matter  of  protests  810471,  etc.,  of  Wm.  A.  Foster  &  Co.,  et  al.  ajrainst  the  assess- 
ment of  duty  by  the  collector  of  customs  at  the  port  of  New  York. 

Reversed. 

Brooks  c(-  Brooks  (Frederick  11'.  Brooks,  /r.,  of  counsel)  for  the  importers. 
Bert  Hanson,  Assistant  Attorney  General    {Harry  M.  Farrell,  special  attor- 
ney), for  the  United  States. 

Before  Board  1  (McClelland,  Sullivan,  and  Bkown,  General  Appraisers), 

Brown,  General  Appraiser :  This  case  was  brought  under  the  legal 
procedure  provided  by  the  customs. administrative  act  to  procure  the 
refund  of  dut}^  claimed  to  have  been  illegally  exacted  by  the  col- 
lector of  customs  at  the  port  of  Xew  York. 

The  merchandise  was  classified  for  dutj-  as  a  coal-tar  distillate, 
\yhi(h,  on  being  subjected  to  distillation,  yields  in  the  portion  dis- 
tilling below  200°  C.  a  quantity  of  tar  acids  equal  to  or  more  thun 
5  per  cent  of  the  original  distillate,  at  15  per  cent  ad  valorem  and 
2|  cents  per  pound  under  Group  II,  section  500  and  section  501,  of 
the  tariff  portion  of  the  revenue  act  of  1916, 

The  importers  claim  the  merchandise  is  free  of  duty  as  cresol, 
which  is  specifically  named  in  Group  I,  section  500,  of  the  act  of 
1916,  the  free-list  portion.  Group  I  also  admits  free  of  duty  meta- 
cresol  having  a  purity  of  less  than  90  per  cent,  orthocresol  having  a 
purity  of  less  than  90  per  cent,  and  paracresol  having  a  purity  of 
less  than  90  per  cent. 

The  dutiable  portion  of  the  same  act  taxes  phenol,  metacresol 
having  a  purity  of  90  per  cent  or  more,  orthocresol  having  a  purity 
of  90  per  cent  or  more,  and  paracresol  having  a  purity  of  90  per 
cent  or  more. 

The  report  of  the  Government  chemist  shows  the  composition  of 
the  article  in  dispute  to  be  about  as  follows : 

Tar  acids  containino:  more  than  5  per  cent  of  phenol,  more  than  50  per  cent 
of  cresols,  and  more  than  5  per  cent  of  tar  acids  distilling  below  200°  C. 

One  of  the  samples  runs  as  high  as  12.6  per  cent  "  phenol "  and 
two  under  5  per  cent. 

The  intermediate  dutiable  list.  Group  II,  also  contains  a  provision 
taxing  coal-tar  distillates  not  otherwise  provided  for  which  below 
200"  C.  distill  a  quantity  of  tar  acids  equal  to  or  more  than  5  per  cent 
of  the  original  distillate.  If  the  sub.stance  here  involved  was  not 
specifically  named  it  would  come  under  the  latter  provision  and 
would  be  dutiable  as  classified.    The  importers  claim,  however,  that 


76 

it  is  specifically  enumerated  as  cresol,  and  that  the  board  having 
decided  in  the  case  of  A.  W.  Fenton,  jr.,  G.  A.  8176  (T.  D.  37679), 
that  the  clause  relating  to  5  per  cent  of  tar  acids  does  not  apply  to 
anything  specially  enumerated,  therefore  this  merchandise  is  free  of 
duty  under  Group  I  as  cresol. 

The  record  is  voluminous.  The  importers  put  on  the  stand  a 
number  of  commercial  witness  dealing  in  the  product  who  testified 
that  the  substance  here  involved  is  known  in  the  trade  as  cresol, 
crysilic  acid,  or  liquid  crude  carbolic  acid,  said  terms  being  inter- 
changeable, and  that  this  substance  is  so  bought  and  sold  all  over 
the  United  States. 

The  Government  in  rebuttal  introduced  several  witnesses,  one  of 
whom  stated  that  he  only  dealt  with  cresol  U.  S.  P.  (that  is,  of  the 
standard  of  purity  mentioned  in  the  United  States  Pharmacopoeia) 
and  testified  that  the  term  "  cresol "  was  limited  to  cresol  U.  S.  P. ; 
and  a  second  witness  who  testified  that  when  the  trade  used  the  term 
"  cresol "  it  meant  cresol  U.  S.  P.,  and  that  crude  impure  cresols  were 
sold  by  his  firm  only  under  designated  numbers  as,  for  instance, 
cresol  No.  5.  The  Government  also  introduced  two  letters  tending 
to  show  that  one  witness  for  the  importers,  who  was  a  chemist,  had 
made  declarations  to  the  effect  that  cresol  alwa^'s  meant  cresol 
U.  S.  P.,  and  that  another  witness,  one  of  the  importers,  the  taxation 
of  whose  goods  is  in  issue,  made  a  similar  declaration. 

Assuming,  without  deciding,  that  this  produces  a  sufficient  conflict 
in  the  trade  testimony  to  prevent  the  establishment  of  a  custom  by 
way  of  trade  designation  which  would  be  definite,  uniform,  and  gen- 
eral throughout  the  United  States,  we  think  that  the  common  mean- 
ing of  the  terms  used  as  shown  by  the  dictionary  definitions  and 
other  literature  on  the  subject  establishes  that  the  three  terms,  cresol, 
cres^dic  acid,  and  liquid  carbolic  acid,  are  sjmonymous. 

Thorpe's  Dictionarj^  of  Applied  Chemistry  (vol.  2,  p.  165)  reads: 

CresyUc  acid. — The  noncrystallizable,  higher  boiling  portion  of  the  phenols 
obtained  in  the  purificatiou  of  phenol  (q.  v.)  is,  after  redistillation,  known 
commercially  ns  cresylic  acid  or  liquid  carholic  acid.  It  is  a  colorless,  oily, 
refractive  liquid,  does  not  solidify  at  80°,  has  a  specfic  gravity  of  1.044,  and 
consists  of  40  per  cent  metacresol,  35  per  cent  orthoc-resol,  and  25  per  cent  para- 
cresol.     (Schulze,  Ber.,  1887,  410.)     (Italics  ours.) 

The  same  author,  in  volume  1  of  the  same  work,  under  the  head  of 
"Carbolic  acid.  phe7'iol"  in  describing  some  of  the  methods  of  obtain- 
ing crude  carbolic  acid  (from  which  the  pure  carbolic  acid  is  after- 
wards obtained)  says  near  the  bottom  of  the  first  column  on  page 
657: 

The  crude  carbolic  thus  obtained  contains,  besides  phenol  (carbolic  acid), 
about  14  to  15  per  cent  of  water  and  variable  quantities  of  cresylic  acid.  It 
occurs  in  commerce  in  three  qualities,  known  as  75's.  60's,  and  50"s  crude  car- 
bolic acid,  and  its  value  is  determined  by  "  Lowe's  "  test. 

(This  test  being  the  measure  of  the  quality  of  the  carbolic  acid.) 

And  later,  in  describing  the  process  of  obtaining  the  pure  carbolic 

acid  from  the  crude  carbolic  acid,  concludes  with  this  statement: 

The  liquid  portion  is  either  sold  as  liquid  carbolic  acid  or  is  worked  up  again 
with  the  next  batch.  The  drained  crystals  are  treated  with  a  small  quantity  of 
concentrated  sulphuric  acid  and  potassium  dichromate  and  redistilled,  when 
"  pure  "  crystallized  carbolic  acid  of  commerce  is  obtained.  In  some  cases  the 
separation  of  the  last  ti-aces'of  cresylic  acid  is  effected  by  adding  a  small 
quantity  of  water,  and  the  mixture  is  cooled,  when  a  hydrate  of  carbolic  acid 


i  i 


crj'i^tallizes  out:  this  is  separated  from  tlie  liquid  portion,  whicli  contains  tlie 
cresjiie  acid,  and  tlie  crystals  are  redistilled. 
The  Century  Dictionary,  1913  (Vol.  II,  p.  1346),  reads: 

Crcsol.—'nxQ  scleral  iiauio  of  the  three  isomeric  phenols  of  the  composition 
CtHsO,  occurring  in  coal-  and  wood-  tar.  Two  are  crystilliue  solids  and  one  a 
liquid.     Also  crcsijlic  acid  and  cressol. 

Crcsijlic—Ot  or  pertaining  to  cresyl— Cresylic  acid,  cresylic  alcohol,  hydrate 
of  cresyl,  various  names  lor  cresol,  C-HsO,  a  colorless  liquid  found  in  coal-tar 
creosote  and  in  the  tar  from  beech-wood  and  fir-wood.  Homologous  with  phenol 
or  carbolic  acid. 

The  Standard  Dictionary,  1910  (Vol.  I,  p.  439),  reads: 

CresoL—Js.ny  one  of  three  isomeric  crystalline  (CiHsO)  obtained  by  the  de- 
structive distiUntion  of  coal,  beech-wood,  and  pine-wood.  Called  also  cresylic 
acid,  methyl  phenol,  oxy toluene. 

Cresylic. — Of  or  derived  from  cresyl— Cresylic  acid,  same  as  cresol. 

Moreover,  in  the  appeal  of  Schultz  (94  Fed.,  820),  where  an  article 
which,  as  appears  from  the  findings  of  facts  in  the  opinion  of  General 
Appraiser  Tichenor  below,  was  of  similar  character,  although  the 
issue  of  law  was  entirely  different,  the  terms  "crude  carbolic  acid" 
and  "  cresylic  acid  "  seemed  to  be  used  interchangeably.  And  in 
Schoellkopf,  Hartford  &  Maclagan  v.  United  States  (94  Fed.,  640) 
an  article  somewhat  similar  in  composition  was  conceded  to  be  com- 
mercially knoAvn  as  crude  carbolic  acid. 

While  the  eighth  edition  of  the  United  States  Pharmacopoeia  and 
tlie  1907  edition  of  the  United  States  Dispensatory  described  cresol 
as  free  from  phenol,  we  take  such  definition  as  referring  to  the  pure 
hieli-grade  medicinal  form.  ]Moreover,  in  the  ninth  edition  of  the 
Pharmacopoeia  of  September  1,  1916.  the  statement  "free  from 
plienol  "  is  omitted. 

We  therefore  hold  that  Congress  in  using  the  term  "  cresol "  gen- 
erally without  limitation  as  to  purity,  coupled  with  the  three  other 
terms,  ortho,  meta,  and  para  cresol  when  not  more  than  90  per  cent 
pure,  intended  to  admit  this  article  free  of  duty  and  did  not  intend 
to  change  the  law  and  tax  these  impure  cresols,  all  of  which,  to- 
gether witli  the  U.  S.  P.  variety,  under  the  previous  departmental 
practice  under  the  act  of  1913.  had  been  admitted  free.  See  T.  D. 
35667. 

And  there  is  nothing  in  the  language  of  the  act  which  would  indi- 
cate that  the  presence  of  more  than  5  per  cent  (running  in  some  of 
the  analyses  to  about  12.6)  of  phenol  would  produce  a  different  result. 
Although  it  is  clear  that  phenol  itself  is  to  be  taxed  under  the  new  act 
the  presence  of  this  small  percentage  of  phenol  would  not,  in  our 
opinion,  make  the  substance  here  involved  taxable  as  "  phenol." 

The  protests  claiming  free  entry  are  therefore  sustained. 


Befoke  Board  1,  August  1G,  1918. 
No.  42464.— Protest  849267  of  J.  W.  Coulston  &  Co.  (New  York). 
Tuscan  Red — ^Protest  Claims. 

Brown,  General  Appraiser:  The  record  here  shows  that  the  mer- 
chandise, known  as  Tuscan  red,  consists  of  a  coal-tar  color  lake  com- 
posed of  oxide  of  iron  containing  about  4  per  cent  of  aniline  color. 
It  was  classified  as  a  coal-tar  color  lake  at  30  per  cent  ad  valorem 


7^ 

and  5  cents  per  pound  under  section  500  (Group  III)  and  section  501 
of  Title  V,  act  of  September  8,  1916. 

In  a  memorandum  filed  by  him  the  protestant  claims  that  the  mer- 
chandise is  dutiable  at  10  per  cent  as  oxide  of  iron,  and  refers  to 
certain  analyses  supplied  by  the  shippers,  claiming  that  said  analyses 
do  not  indicate  an  aniline  color  nor  a  color  lake,  and  argues  that  it 
does  not  possess  the  characteristics  of  a  color  lake  and  is  not  used  as 
a  lake. 

This  issue,  however,  is  not  raised  by  the  protest,  no  such  claim 
being  made  therein.  Benjamin  Iron  &  Steel  Co.  v.  United  States 
(2  C.  A.  E.,  159;  20  Treas.  Dec,  1259). 

To  tlie  claims  of  the  protest  the  importer  must  be  confined  in  a  proceeding  to 
recover  duties  whicli  he  alleges  have  been  unlawfuUv  imposed  and  exacted. 
Davies  v.  Arthur  (7  Fed.  Cas.,  43;  affirmed  in  9G  U.  S.,  140). 

Neither  can  the  importer  be  permitted  to  amend  his  protest  after  the  time 
provided  by  law  for  making  it  has  expired.  In  re  Sherman  (49  Fed.,  224; 
affirmed  in  55  Fed.,  276). 

It  is  also  necessary  for  the  importer,  after  protest,  to  establish  by 
competent  proof  before  the  board  the  correctness  of  his  claim. 
Claims  made  in  his  protest  or  in  his  brief  do  not  themselves  have  the 
force  or  effect  of  evidence.  United  States  v.  Hogan  (5  C.  A.  E.,  1; 
25  Treas.  Dec,  657).  And  ex  parte  affidavits  are  not  competent 
evidence.  United  States  v.  Freese  Co.  (4  C.  A.  E.,  271;  2i  Treas. 
Dec  889). 

The  claim  in  the  protest  reads : 

We  desire  reliquidation  under  section  500,  Group  III  (3)  as  colors  manufac- 
tured in  whole  or  in  part  of  products  provided  for  in  Group  I  at  30  per  cent 
ad  valorem,  as  the  aniline  content  (4  per  cent)  of  these  goods  belongs  to  the 
naphthalene  class,  which  as  shown  under  Group  I  is  on  the  free  list. 

The  merchandise,  on  the  record  before  us,  being  a  color  lake  manu- 
factured in  part  from  a  coal-tar  product  provided  for  in  either  Group 
I  or  Group  II  (sec  500).  act  of  1916,  falls  within  the  provision  of 
Group  III  for  "color  lakes  *  *  *  when  *  *  *  manufac- 
tured in  whole  or  in  part  from  any  of  the  products  provided  for  in 
Groups  I  and  II."  and  is  also  subject  to  the  special  duty  of  5  cents 
per  pound  prescribed  by  the  provision  of  section  501  "  upon  all  arti- 
cles mentioned  in  Group  III "  with  certain  specified  exceptions. 

In  view  of  the  expression  in  Group  III,  "  manufactured  in  part,'" 
it  is  unnecessary  to  discuss  what  percentage  of  coal-tar  product  is 
used  in  making  the  colors,  color  lakes,  or  other  articles  x^rovided 
for  therein.  Note  Abstract  42413  covering  somewhat  similar 
merchandise. 

For  the  above  reasons  the  protest  is  overruled. 


Befoke  Boaed  1,  August  16,  1918. 

No.  42465.— Protests  826475,  etc.,  of  Favor,  Ruhl  &  Co.  (New  York). 

Artists'  Colors. — Artists'  colors  consisting  of  coal  tar  or  alizarin 
lakes  put  up  in  tubes,  classified  under  section  500,  Group  III,  and 
section  501,  act  of  September  8,  1916,  are  claimed  dutiable  as  artists' 
colors  or  color  lakes  at  20  per  cent  under  paragraph  63,  tariif  act 
of  1913. 


79 

Opinion  by  Browx,  G.  A.  On  the  authority  oi  G.  A.  8110  (T.  D. 
37429)  the  artists'  colors  in  question  ■s^•cre  held  properly  classified 
under  the  act  of  September  8.  191G. 


Before  Boakd  1,  August  1G,  193  S. 
No.  42466.— Protest  S1S020  of  D.  C.  Andrews  &  Co.  (New  York). 

MoxoMET — PHOTOGKArHixG  Chemicals. — "  MonoiTiet,"  classified 
as  a  photographic  chemical  manufactured  from  coal  tar  at  30  per 
cent  ad  valorem  plus  5  cents  per  pound  under  the  provisions  of 
sections  500  and  501,  Group  III,  act  of  September  8,  1916,  is  claimed 
more  specifically  provided  for  as  a  chemical  compound  at  15  per  cent 
under  paragraph  5,  tariff  act  of  1913. 

Opinion  by  Browx,  General  Appraiser.  The  monomet  in  question 
was  found  to  be  a  chemical  compound  derived  from  coal  tar  and  that 
it  is  used  for  developing  photographs.  It  was  held  properly  classi- 
fied as  a  photographic  chemical  under  the  act  of  September  8,  1916. 


(T.  D.  37790— G.  A.  8197.) 
Na'phthdleiie. 

1.  The  ascertainment  of  wlietlier  naphtbaleue  falls  within  the  provisions  of  sec- 

tion 500.  Group  I  or  Group  II.  of  tlie  act  of  September  S.  1916,  requil'es  an 
accurate  scientific  test  as  to  tlie  solidifying  point,  and  if  it  has  a  solidifying 
point  of  79°  C.  or  more,  it  is  dutiable  ;is  provided  therein. 

2.  The  tests  to  ascertain  such  fact  are  strictly  scientific,  as  only  by  such  methods 

c;in  the  true  solidifying  point  be  known. 

3.  In  this  case  the  instruments  used  and  the  metbod  piirsued  by  tbe  Government 

analyst  conform  to  the  scientific  process  necessary  to  accurately  ascertain 
the  solidifying  point. 

United  States  General  Appraisers,  New  York,  October  9,  1918. 

In  the  matter  of  protest  848787  of  F.  B.  Vandogrift  &  Co.  against  the  assessment  of  duty 
by  the  collector  of  customs  at  the  port  of  Philadelphia. 

[Affirmed.] 

Peter  Hachctt  for  the  importers. 

Bert  Hanson,  Assistant  Attorney  General  {Thomas  F.  TumiiUi/,  special  attor- 
ney), for  the  United  States. 

Before   Board   1    (McCi^lland,   Sullivan,   and   Brown,   General   Appraisers; 
Bkown,  G.  a.,  concurring). 

SuLLivAx,  General  Appraiser:  The  merchandise  involved  in  this 
protest  consists  of  naphthalene.  It  was  assessed  with  duty  at  15 
per  cent  ad  valorem  and  2^  cents  per  pound  under  the  provisions 
therefor  in  sections  500  and  501,  Group  II,  act  of  September  8.  1916. 
It  is  contended  by  the  protestants  that  the  merchandise  is  free  of 
duty  under  Group  I  of  the  same  act. 

This  Avas  a  Philadelphia  importation,  and  the  fact  at  issue  was 
whether  or  not  the  naphthalene  under  consideration  had  a  solidif}'- 
ing  point  over  or  under  79°  C.  Three  experts  testified  as  to  the 
degree  at  which  it  solidified.    On  the  part  of  the  protestants  Mr,  Mor- 


80 

rison  placed  the  solidifying  point  at  78.95°  and  Mr.  Carlitz  at  76.40°. 
Mr.  Roberts,  the  Government  analyst,  placed  the  solidifying  point 
at  79.1°  C.  To  arrive  at  the  weight  to  be  given  to  these  findings 
requires  careful  examination  of  the  testimony.  It  should  be  kept  in 
mind  that  the  merchandise  consists  of  dry  flakes,  and  to  ascertain 
the  solidifying  point  requires  that  these  flakes  be  reduced  to  a 
liquid. 
Mr.  Morrison's  test  is  described  in  his  testimony  as  follows : 

*  *  *  Melt  the  material  In  tlie  tube ;  suspend  a  thermometer  in  it  and  in- 
close in  another  vessel  to  get  the  air  away ;  stir  it  until  the  thermometer  no 
longer  goes  down — is  stationary ;  and  then  wait  for  it  to  rise ;  it  rises  a  tenth, 
or  two  or  three  tenths,  as  the  case  may  be;  and  that  is  what  is  called  the 
solidifying  point.    We  call  it  the  titer. 

He  claims  that  this  method  is  the  usual  and  customary  one  for 
ascertainins  the  solidifying  point  in  the  trade  and  commerce  of  the 
country,  but  states  it  is  used  principally  in  determining  the  value 
of  fats.  In  arriving  at  the  solidifj^ing  point  his  thermometer  is  not 
completely  submerged.    He  states: 

I  had  this  thermometer  standardized  at  a  submersion  of  50 ;  I  had  it  sub- 
merged to  the  50. 

^  ******  * 

Q    The  remainder  of  it  was  exposed? — A.  Yes. 

Q  Did  you  ever  use  a  test  where  the  thermometer  is  entirely  submerged? 
Did  you  ever  see  it? — A.  I  never  heard  of  it;  they  don't  do  it  commercially. 

Mr.  Carlitz  used  an  entirely  different  method,  but  claims  it  would 
produce  the  same  result  as  the  method  used  by  Mr.  Morrison.  As  to 
his  method  he  testifies : 

I  took  a  capillary  tube,  sealed  at  one  end,  and  introduced  the  previously  dried 
and  finely  ground  naphthalene  to  a  depth  of  about  a  quarter  of  an  inch  or  a 
little  less  and  that  capillarv  was  attached  to  a  thermometer  by  means  of 
a  platinum  wire,  and  both  of  those  were  immersed  in  sulphuric  acid  con- 
tained in  a  beaker.  I  tried  the  experiment  in  several  forms.  This  is  the  form, 
as  I  recall  I  ui^ed  on  which  the  report  was  based.  Now,  then,  I  heated  the 
sulphuric  acid  gentlv,  with  the  stand,  stirring  until  the  material  melted,  and 
then  I  removed  the"^  flame  and  continued  my  stirring  and  carefully  observed 
the  naphthalene  until  it  solidified,  and  took  that  as  the  solidifying  point  and 
reported  that  point. 

He  stated  that  the  method  used  by  Mr.  Morrison  as  outlined  was 
more  applicable  to  fats,  but  he  believed  the  result  was  practically 
the  same.  He  further  stated  that  the  naphthalene  was  placed  in  a 
small  capillarv  attached  to  a  thermometer:  that  he  stirred  the 
liquid,  but  not  the  naphthalene ;  that  the  thermometer  was  stationary ; 
and  that  there  would  not  be  any  supercooling  in  his  method. 

His  testimony  then  continues  as  follows : 

Q    How  much  naphthalene  did  you  have?— A.  A  depth  of  a  quarter  of  an  inch. 

Q.  What  weight?— A.  The  weight  was  very,  very  small;  I  dare  say  perhaps  a 
tenth  of  a  gram. 

Mr.  Roberts,  the  Government  analyst,  described  the  method  used 
by  him  as  follows :  ^ 

That  test  was  a  test  for  the  solidifying  point  of  the  sample ;  after  being  well 
mixed  as  received— vou  are  refeiTing  now,  I  take  it,  to  the  mark  JOR— this 
sample  tested  by  me  79.1°  C.  *  *  *  The  sample  was  thoroughly  mixed;  in- 
troduced into  the  inner  tube  of  an  apparatus  known  as  Roih  melting  point 
apparatus,  which  consists  of  a  long,  narrow  test  tube  about  10  to  12  inches 


81 

Ions  antl  five-eighths  to  three-quarters  of  an  inch  in  diameter.  All  but  the 
upper  inch  (approximately  an  inch  of  it)  is  surrounded  by  a  larger  glass  jacket, 
some  inch  and  a  quarter  in  diameter,  the  lower  part  of  which  jacket  is  ex- 
panded to  a  bulb  slightly  larger;  the  inner  tube  is  open  at  the  upper  end,  and 
the  jacket  Is  tubulated  with  a  ground-glass  opening  fitted  with  a  glass  stopcock 
adapting  it  to  receive  a  jacket  of  water.  The  naphthalene  is  introduced  in  the 
dried,  solid  condition  into  the  inner  tube,  which  I  have  called  a  test  tube,  to 
suflicient  depth  so  that  as  soon  as  it  is  melted  it  will  occupy  a  depth  of  not 
less  than  3  or  4  inches  in  the  tube,  care  being  talvcn  not  to  permit  the  melting 
temperature  to  exceed  a  few  degrees  above  the  actual  melting  point  of  the 
naphthalene.  A  thermometer  of  such  length  as  to  permit  all  of  the  porticm  of 
it  that  is  used  to  be  immersed  below  the  upper  level  of  the  water  in  the  water 
jacket,  and  such  thermometer  being  carefully  standardized  and  accompanied 
by  a  certificate  of  corrections  from  the  United  States  Bureau  of  Standards, 
such  a  thermometer  is  immersed  so  that  the  bulb  \vill  stand  centrally  in  the 
melted  naphthalene.  There  is  also  placed  in  the  melted  naphthalene  a  thin 
metal  wire  bent  at  the  lower  end  into  a  ring  to  form  to  permit  of  stirring  up 
an  up-and-down  motion ;  and  during  the  entire  opei-ation  and  observation  the 
molten  naphthalene  is  stirred  with  such  rod.  The  thermometer  is  observed  at 
short  intervals  of  time,  one-half  minute  usually,  and  readings  are  taken  until 
it  reaches— until  the  observed  temperature  reaches  the  lowest  point,  rises 
slightly  and  becomes  constant  for  a  period  of  several  minutes,  fi-equeutly  as 
much  as  10  minutes.  The  observed  temperature  used  for  purpose  of  report  is 
that  which  is  found  at  the  point  .where  this  temperature  is  constant.  That 
temperature  is  further  corrected  by  any  error  that  may  be  in  the  tJiermometer 
and  for  errors  in  the  exposed  portions  of  the  stem.  ,  The,  final  figure  thus 
obtained  is  the  figure  reported  here.  '  ■  '  "" 

.  We  set  out  these  methods  fully  in  order  that  it  ma^^  be  ascertained 
^vhich  is  the  most  accurate  in  determining  the  point  at  which  the 
naphthalene  solidifies. 

In  this  record  the  question  arises,  Was  it  not  the  intent  of  the 
statute  that  the  test  to  determine  the  solidifying  point  of  the  naphtha- 
lene be  a  scientific  one  ?  The  statute  provides,  "  *  *  *  naphtha- 
lene having  a  solidifying  point  less  than  79°  C,     *     *     *." 

It  would  seem  as  though  in  a  provision  of  law  where  the  question 
as  to  whether  merchandise  should  or  should  not  be  subject  to  duty 
depends  on  the  point  at  which  it  solidifies,  the  determination  of  such 
question  should  be  by  the  most  accurate  method  possible.  The  nature 
of  the  merchandise,  and  the  clearness  of  the  language  used  in  the 
statute  leave  no  doubt  in  our  mind  that  the  method  of  ascertaining 
such  solidifying  point  should  be  as  nearly  perfect  as  science  could 
devise. 

Admittedly  the  method  used  by  Mr,  Carlitz  could  not  be  followed. 
In  the  first  instance,  his  liquid  always  remains  constant.  The  quan- 
tity is  extremely  small.  The  method  pursued  by  Mr.  Morrison,  by 
reason  af  the  fact  that  portions  of  the  thermometer  were  exposed, 
does  not  meet  Avith  our  approval.  In  his  testimony  it  is  disclosed 
that  the  test  he  made  prior  to  the  correction  was  0.38  of  a  degree 
higher  than  that  reported.  The  test  that  he  used  is  called  the  titer 
test,  and  its  merit  consists  in  it  being  more  expeditious  than  the  test 
used  by  the  Government.  The  record  discloses  that  if  a  portion  of 
the  thermometer  is  exposed  it  will  have  a  tendency  to  lower  the 
degree  of  the  solidifying  point.  The  method  adopted  by  the  Gov- 
ernment analyst  produced  ^9.2°  as  the  solidifying  point,  but  as  stated 
by  Mr.  Roberts,  in  making  the  correction  on  the  thermometer  as  pro- 
vided by  the  Bureau  of  Standards,  0.1  was  subtracted.  It  then  left 
the  solidifying  point  as  79.1^.j;;f, '  ."/^  ';'^^j\ 

94582—18- 6  .q^ihA   'U^ 


82 

The  following  is  Mr.  Roberts's  testimony  with  reference  to  the 
method  pursued  by  Mr.  Morrison : 

Q.  Have  you  ever  seen  chemists'  reports  for  tests  similar  to  tlie  test  testified 
to  by  Mr.  Morrison  for  ttiis? — A.  That  is  a  common  commercial  way  of  taking 
the  titer  test  for  fats. 

This  merchandise  was  not  a  fat,  and  while  it  may  be  that  the  titer 
method  would  give  fair  results  it  would  not  reach  as  accurate  a  con- 
clusion as  the  method  pursued  by  Mr.  Roberts.  Mr.  Morrison  was 
required  under  the  laws  of  physics  to  make  an  allowance  for  the 
emergent  stem.  Mr.  Roberts  did  not  have  an  exposed  stem.  His 
thermometer  was  entirel}'  submerged. 

On  being  recalled,  Mr.  Morrison  testified : 

Q.  In  stating  your  method  pur>;ued  here  and  giving  your  test,  did  you  make  an 
allowance  for  the  emersion  of  the  stem? — A.  Yes,  0.38  of  a  degree;  that  is,  for 
the  emergence,  the  part  of  the  stem  that  is  outside. 

Q.  How  did  you  arrive  at  what  percentage  to  allow? — A.  I  had  the  ther- 
mometer tested  by  the  Precision  Thermometer  Co.,  and  they  compared  it  with 
the  Bureau  of  Standards  thermometer.  *  *  *  They  gave  me  a  tenth,  the 
same  as  the  Bureau  of  Standards,  and  I  made  the  correction  for  that  tem- 
perature. 

Q.  (By  General  Appraiser  Brown.)  Which  way  did  you  make  it? — A.  I  sub- 
tracted it. 

Q.  In  other  words,  your  own  reading  would  have  made  it  freeze  higher  than 
the  figure  you  reported  in  the  testimony  before? — A.  Yes,  sir. 

Q.  Wouldn't  the  emergent  stem  have  made  it  freeze  at  a  lower  place? — A.  I 
don't  know  whether  it  was  the  emergence,  or  whether  the  thermometer  was 
not  correct,  but  that  is  the  correction  to  make  at  that  temperature. 

Q.  You  don't  know  whether  that  is  a  correction  for  the  emergence?— A.  I 
just  asked  them  to  standardize  it  for  a  submergence  of  50,  because  that  is 
what  I  have  to  use  in  my  apparatus. 

We  need  not  go  into  an  analysis  of  the  phenomena  of  freezing,  and 
-whether  or  not  every  body  under  the  same  pressure  is  solidified  at  a 
fixed  temperature.  There  are  certain  general  rules  that  are  well 
stated  in  Ganot's  Physics.    He  states  (p.  368)  : 

*  *  *  Solidification  or  congelation  is  the  passage  of  a  body  from  the 
liquid  to  the  solid  state.  This  phenomenon  is  expressed  by  the  two  following 
laws:  ^      ,  , 

1.  Every  body  under  the  same  pressure  solidifies  at  a  fixed  temperature, 
which  is  the  same  as  that  of  fusion. 

2.  From  the  commencement  to  the  end  of  the  solidification  the  temperature 
■of  a  liquid  remains  constant. 

Certain  bodies,  more  especially  some  of  the  fats,  present  an  exception  to  the 

first  law.  in  so  far  that  by  repeated  fusions  they  seem  to  undergo  a  molecular 

change  which  alters  their  melting  point.  ,      ^    ,.      ,    ^ 

The  second  law  is  the  consequence  of  the  fact  that  the  latent  heat  absorbed 

during  fusion  becomes  free  at  the  moment  of  solidification. 

The  freezing  point  of  pure  water  can  be  lowered  by  several  degrees,  if  the 
water  is  previously  freed  from  air  by  boiling  and  is  then  kept  in  a  perfectly 
;  still  place.     *     *     * 

It  will  be  observed  that  Mr.  Carlitz's  method  was  to  keep  the  fluid 

perfectly  still.    On  the  other  hand,  Mr.  Roberts  kept  it  in  motion. 

Ganot  further  states: 

In  fact   it  may  be  cooled  to  —15°  C,  and  even  lower,  without  freezing.    But 

when  it  is  agitated  or  comes  in  contact  with  a  particle  of  ice,  the  liquid,  or  a 

part  of  it,  at  once  solidifies. 

Here  is  the  kernel  of  the  nut.  What  the  law  contemplated  is :  At 
what  point  does  this  naphthalene  solidify  in  the  ordinary  way,  and 
aoes  the  method  used  by  Mr.  Roberts  of  keeping  it  constantly  infl 


83 

motion  more  accurately  arrive  at  the  solidifying  point  than  that 
of  Mr.  Carlitz  or  Mr.  ^Morrison? 

The  record  satisjQes  us  that  the  test  applied  by  the  Government 
analvst  more  nearly  arrived  at  the  correct  point  of  solidification  than 
either  of  the  tests  offered  by  the  importers. 

The  protest  is  overruled,  and  the  decision  of  the  collector  affirmed. 

Bkown,  General  Appraiser:  I  concur  in  the  result. 


Bkfoke  Board  1,  October  9,  191S. 
No.  42608.— Protest  85037S  of  Standard  Forwarding  Co.  (New  York). 

Cresol. — Cresol,  or  cresylic  acid,  classified  as  a  coal-tar  distillate 
at  15  per  cent  ad  valorem"^  and  2^  cents  per  pound  under  Group  II, 
sections  500  and  501  of  the  act  of  1916,  is  clauned  free  of  duty  as 
creosol  under  Group  I,  section  500,  of  the  same  act. 

Opinion  by  Browx,  G.  A.  From  an  analysis  of  the  sample  it  was 
found  that  the  merchandise  contained  2.6  per  cent  of  phenol.  It 
was  held  free  of  duty  under  Group  I,  section  500.  G.  A.  8192  (T.  D. 
37740)  followed.  

Befobe  Board  1,  November  21,  1918. 

No.  42719. — Protests  850113,  etc..  of  Condensite  Co.  of  America  et  al.    (New 

York). 

Cresol. — Cresol,  cresylic  acid,  or  liquid  carbolic  acid,  classified  at 
15  per  cent  ad  valorem  and  2^  cents  per  pound  under  Group  II,  sec- 
tions 500  and  501  of  the  act  o^f  1916,  are  claimed  free  of  duty  under 
the  provision  for  cresol  in  Group  I,  section  500,  of  the  same  act. 

Opinion  by  Brown,  G.  A.  The  merchandise  in  question  was  found 
to  be  tar  acids  the  same  as  that  covered  by  G.  A.  8192  (T.  D.  37740). 
It  was  held  free  of  duty  under  Group  I,  section  500. 

O 


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